There are no active ads.

Advertisement

More bad news for Apple as UBS points to new iPhone sales slump

by Todd Haselton | January 20, 2016January 20, 2016 2:00 pm PDT

Uh oh – the bears are really out for Apple. The company’s share price has tanked during recent weeks, now sitting around $95, below the 7-1 stock split price. A lot of that might come as a result of concerns for future iPhone sales, and a new report from UBS suggests folks aren’t snatching up newer iPhones as much as they did a year ago.

“There has been concern that consumers are less enthusiastic about the feature and performance gains with the latest iPhone 6s/6s+ models,” Milunovich said. “Indeed, more consumers appear to be opting for last year’s iPhone 6 models that are priced $100 lower.” Those newer devices still make up a bulk of sales, according to the report’s estimates, at about 67 percent of all unit sales, but the figure is down from 75 percent of all iPhone sales a year ago.

Milunovich suggests that Apple’s average selling price of each phone will come in at about $662, far below “the consensus of $680,” Barron’s explained. That implies consumers aren’t buying the most expensive models, either.

To add insult to injury, Milunovich thinks Apple will miss March quarter sales estimates with 50 million units sold, 5 million units below Wall Street’s consensus, according to Barron’s.

Sounds like the iPhone 7 is really going to have to blow people away with new features if Apple wants to reverse this trend. That phone isn’t expected until September, though.

Barron's The Street

Todd Haselton

Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...

Advertisement

Advertisement

Advertisement