At the end of October, Apple announced its fourth quarter earnings, revealing yet another smash hit series of months for the company. And, yet again, a series of strong sales on the back of the iPhone.
But according to a new note released by the Credit Suisse Group, things aren’t looking so bright for Apple moving forward. Based on the note the analysts released, Apple’s stock is souring a bit on Tuesday, November 10, as the credit group has reevaluated its expectations for iPhone demand in the future.
“Apple has lowered its component orders by as much as 10% according to our teams in Asia,” wrote Credit Suisse analyst Kulbinder Garcha, who said the cuts seem to be driven by weak demand for the iPhone 6s launched in September. “The continued weak supply chain news could weigh on Apple shares for the next few weeks/quarters.”
The report indicates that instead of shipping 242 million iPhones in the next calendar year, the analysts believe Apple will ship only 222 million iPhones in the same stretch of time.
As far as the rumored 4-inch iPhone goes, which recently saw attention out of the Rumor Mill, the note states that it would only have an incremental effect on revenue for Apple, despite having a distinct form factor from the current lineup of devices the Cupertino-based company offers:
“A 4” iPhone, without force touch, would be a noticeably different form factor than Apple’s existing products and could be incremental to both revenue and [earnings per share].”
[via The Wall Street Journal]
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