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.