Tough Times Ahead for Apple Due to Inflating iPhone Prices: Analyst


iPhone X model number

An analyst from Nomura Instinet, Jeffrey Kvaal, has suggested that the iPhone X not doing well in the industry could mean “trouble” for Apple in the future. He believes that the market is less willing to adapt to the increasing prices of iPhones, thus resulting in lower sales estimates. This could no doubt hurt the company’s bottom line and impact sales overall.

This also meant that he lowered the iPhone X sales predictions for 2018 from 226 million units to 221 million. The firm’s South Korean analysts added that demand for Samsung’s Galaxy S9 flagship is down by 30% year-over-year, suggesting that things are not going well for some of the biggest mobile manufacturers in the industry.

Kvaal said – “We do not believe it is coincidence that the highest end of the product portfolio, the X, is the model that is flagging. The China domestic vendors may be focusing on the mid-tier of the market. These datapoints align with the theory that smartphone ASPs may be bumping up against their upper limit.”

He was also quick to point out that AT&T’s BOGO (buy-one-get-one) plan didn’t seem to work out all that well for Apple or the carrier.

iPhones are incredibly expensive in some markets, particularly in India where the 64GB iPhone X will set you back by nearly $1300, compared to the $999 price tag in the U.S.

Apple has always acknowledged India as one of its key markets, and the fact that the iPhones are incredibly expensive in the region might be down to local import taxes.

However, one can agree that the iPhone X is expensive regardless of where you get it from. So perhaps it behooves Apple to rethink its pricing strategy with future models.

What do you think?

[Via CNBC]

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