Strong Carrier Promotions Helped iPhone Sales in the US and China in Q2


iPhone X Body Shots 2

Barclays analyst Mark Moskowitz claims in its latest report that the June quarter will be a positive one for Apple thanks to strong carrier promotions in the United States and China, free iCloud storage trial, and fluctuations in exchange rate.

US carriers have been offering Buy One Get One deal on iPhone 8 and iPhone X, and in certain cases, they have even offered a discount of up to $700 on the handsets. A similar story prevails in China where carriers are heavily subsidizing its price in a bid to boost its overall sales.

The US currency depreciating by 4 percent in June is also going to benefit Apple. The new iCloud storage trial option from Apple is also going to help in the short-term, though its overall impact would only be visible from about 6 months to a year from now.

Despite a positive outlook for the remainder of 2018, Moskowitz does have concerns as to how Apple will fare in 2019. With the company yet to launch its 2018 iPhone lineup which includes a cheaper 6.1-inch LCD iPhone, I’d say there’s no point in showing concern about Apple’s performance in 2019. If reports are to be believed, the company is working on plenty of new devices apart from the iPhone which includes a new high-end AirPods, over-ear headphones, a new HomePod, and more.

It is common for carriers and retailers to offer heavy discounts on iPhones during the April-June quarter as iPhone sales usually slow down during this period. We should see carriers offer an even bigger discount on the iPhone X in the next quarter as its usually the slowest in terms of iPhone sales. This is because most people hold back on their iPhone purchase in anticipation of a new one which Apple tends to launch towards the end of the quarter.