Soc Gen analyst says there's 'trouble brewing' as Apple iPhone 5S sales made a 'puzzling' jump this quarter
"There appears to have been a pick-up in demand for the older iPhone 5s model. Sales of this model increased from 10% of total units in Q1 FY15 to around 20% by Q2. This is unusual," says Perkins in a new report. "Normally demand for older models never recovers once the new model is released ... this observation remains slightly puzzling."
Perkins' data comes from monitoring handset exports of Hon Hai, and Pegatron, two handset manufacturers contracted by Apple.
If Perkins is right, this could be a problem for Apple since the 5S is cheaper is a $100 cheaper than the iPhone 6, and $200 cheaper than the 6 Plus.
In addition to increased 5S sales, Perkins notes that the dollar is getting stronger. As the dollar gets stronger, it's going to hit the average selling price (ASP) of the iPhone. Perkins thinks the ASP of the iPhone is going to drop to $651 from $687 in the previous quarter.
Of course, this happens every year. In the holiday quarter, iPhone ASPs are strong, then they drop in the March quarter. Even if Perkins is right, and the ASP drops to $651, it's still going to be one of Apple's best selling prices in years.
last year's blockbuster launch. The iPhone 6 had a bigger screen than the iPhone 5S, which led to a massive jump in sales. Apple doesn't have another easy way to upgrade the phone to goose sales.
"The most obvious hole in the previous iPhone portfolios (a variety of form factors) has been filled," says Perkins, adding that geographical expansion will not make much of a difference since Apple is already selling the iPhone through almost all major mobile providers.
But what about the Apple Watch? Can't it make up for any potential softness with the iPhone? Nope, says Perkins: "We do not believe that the Apple Watch will be a major game changer for Apple, at least over the next 12 months."
- Elon Musk sparks another Shiba Inu rally ‘to the moon’ — other Shiba coins follow suit
- A renowned female crime novelist who won a million-euro prize in Spain turned out to be three middle-aged men
- Microsoft President Brad Smith reportedly told Bill Gates more than a decade ago to stop emailing female employees
- Kunal Shah’s CRED doubles its valuation to $4 billion in less than six months
- Apple MacBook Pro and AirPods 3 launched – Indian pricing, features and everything you need to know
- Apple M1 Pro and M1 Max vs M1: Here’s what Apple improved with its new custom chips
- IRCTC crosses ₹1 lakh crore in market cap for the first time as investors adore its monopoly
- Crypto markets restless as Bitcoin ETF gears up to meet the NYSE tonight