Apple's next earnings report could reveal a worrisome trend. In a new write-up, analyst Ming-Chi Kuo says the Cupertino-based company should expect significantly lower sales for the iPhone XS and the iPhone XR. The entire iPhone line will be in for a similar drop, too. Throughout the iPhone line, Apple might be exposed to the mobile industry's two biggest problems.
The report suggests Apple will see iPhone shipments drop sharply next year. In 2018, Kuo projects around 210 million units are going to ship. However, that figure drops to as little as 188 million the year after. Hardware sales are down in the mobile industry, and Apple's unbreakable sales estimates could be in limbo soon.
Kuo originally projected the iPhone XR would land 20-25 million shipments in Q1 2019, and that's changed to 15-20 million. The weak demand continues plaguing expectations.
Without question, the iPhone XS and the iPhone XR are failing to secure sales. Oversaturation has damaged the industry, and consumers are hanging onto their old smartphones for longer periods. Apple's previous iPhone models can't offset any of that despite being more affordable.
The sky isn't falling, though. Apple has plenty of cash in the bank, and the premium nature of its portfolio keeps revenue at a high level. iPhone sales are hurting, but it's not at a point where Tim Cook and other executives in Cupertino need to panic.
In an effort to push the latest iPhone models, Apple decided to increase trade-in credits. So you're able to get the iPhone XS or the iPhone XR for a lot less money if you ditch your old iPhone. That doesn't create strong demand, but it does upgrade customers to more expensive hardware even though Apple takes a small hit on the discount. Apple just wants to get the iPhone XS and the iPhone XR into more hands.
The 2019 iPhone models are likely to start appearing in leaks in early 2019. Kuo doesn't have information on them yet, but he did note it'll take a few more months for anything to materialize. Then it'll become clear how Apple plans on turning around iPhone sales.
The Galaxy S20 Ultra's Space Zoom camera is amazing and a bit creepy
The Galaxy S20 Ultra supports up to 100X zoom, which Samsung calls Space Zoom, but is it any good? Can a phone really product usable photos at 100x zoom? We've got our Galaxy S20 Ultra already so join us to find out!
Win an iPhone, iPad and Apple Watch with the Reader's Choice giveaway!
What's the best phone of 2019? Is it the iPhone 11 Pro, Pixel 4 or OnePlus 7T? What about the best laptop, games console, tablet and more? Vote NOW in the Reader's Choice awards and win BIG in time for the holidays!
Here are the best products from IFA 2019!
Here are the products announced at IFA 2019 that were worthy of our Best of IFA 2019 awards. Also featuring MrMobile's single best product at the show!
Keep your dirty clothes seperate with the best laundry baskets.
Keeping ahead of the piles of laundry is every adult's trial and tribulation. Make it a little easier with our favorite laundry baskets.