It is already known that Apple has been struggling with weak iPhone sales for some time. Fans' expectations are high - the company is not living up to them and analysts are therefore assessing the situation as disappointing and lowering their own expectations of the company.
According to a new Nomura Holdings analysis, Apple's iPhone 11 is becoming a problem iPhone. The financial experts also warn against optimistic views that the 5G iPhone will be the big hit in 2020. In the wake of the assessment, Nomura is lowering its expectations below the Wall Street consensus. The upcoming launch of the 2019 iPhone series will not improve demand for iPhones, as the devices' specifications are modest, according to Nomura. "We see a risk to estimates related to the December quarter," warn the Japanese financial experts. It is currently assumed that the new iPhone generation will be largely based on the iPhone XS series, with only updates to the camera and the general rear feature—bilateral wireless charging.
Average selling price of $745 expected
This is not a reason for iPhone fans to buy, as can be seen from many Apple forums. In response to the general situation, Nomura has already lowered its profit forecast for the new quarter from $4.59 to $4.30 - Barron's reports. For comparison: Wall Street is currently expecting $4.77. As for Apple's sales figures, Benzinga announced that Nomura expects an average selling price of $745 - Wall Street is expecting $749. The number of iPhones shipped is currently estimated at 186 million units. Based on various reports from suppliers, Apple expects sales of the 2019 series to be roughly on a par with the 2018 devices. The number of units ordered is therefore expected to be the same as last year.
2020 is critical
Nomura's analysis didn't just focus on the iPhone 11 – the Japanese financial experts also believe the 2020 series should be viewed with skepticism. The analysts believe expectations are too optimistic – including with regard to 5G functionality. "We believe many investors are looking toward the launch of the 2020 5G iPhone," Instinet said, while also pointing out that "the shape of the 5G cycle is uncertain." According to current rumors, Apple is planning to launch 5G in 2020. In addition to the new cellular modem, the devices are also expected to feature a new design.
According to recent reports, a 3D camera is also being planned. These rumors led some analysts to set a price target of 250 US dollars per share next year. It remains to be seen whether Nomura will be right - one thing is clear: the upcoming iPhone 11 will not have it easy. The launch of the new iPhone devices will take place on September 10th - Apple has announced this in the form of a keynote invitation confirmed. (Photo by Denys Prykhodov / Bigstockphoto)
