Apple Expected to Announce Lower iPhone Sales Due to Poor iPhone XS, XR Demand

[The AchieVer]

Apple Expected to Announce Lower iPhone Sales Due to Poor iPhone XS, XR Demand 

 

Apple is expected to announce dropping iPhone sales later this month as part of the company’s reports concerning its Q2 FY19 earnings.

 

Media research firm OTR Global said in a note published by Street Insiderthat Apple sold between 37 million to 42 million iPhone units, whereas the original estimation was between 40 million and 45 million units.

The numbers were obtained from executives working for 18 Asian suppliers, and it seems that the drop was caused by lower demand for the iPhone XS and iPhone XR.

Apple no longer reveals how many iPhone units it ships every quarter, but the company originally said revenue would total between $55 billion and $59 billion.

However, as compared to the same quarter a year ago, Apple’s iPhone shipments are likely to decline significantly. The company sold 52.2 million iPhones in the second quarter of 2018, while its revenue totaled $61.1 billion.iPhone XR selling wellMeanwhile, data offered by Kantar reveals a strong performance of the iPhone XR in Europe, and this model even topped smartphone sales in the United Kingdom.

“iPhone XR was a strong performer for Apple this quarter, outselling the combined iPhone XS and iPhone XS Max in Europe and claiming the title of the best-selling model in Great Britain,” Dominic Sunnebo, Global Director for Kantar, said.

In the United States, iPhone XR accounted for 10 percent of all smartphones sold in the country in the three months ending March 2019.

“As smartphone prices rise rapidly, iPhone XR provides Apple with a way to keep its customers with older models continuing to upgrade regularly, and less tempted by the competition,” the Kantar official explained.

Apple is projected to unveil its quarterly earnings on April 30, but without specifics no longer shared on iPhone sales, we’ll never know exactly how many units the company shipped.

 

 

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[The AchieVer]

Apple Sued for Hiding the iPhone Sales Decline 

 

Two lawsuits filed against Apple allege that the Cupertino-based tech giant violated the Securities Exchange Act of 1934 by making false and misleading statements related to the company’s business and prospects.

 

Specifically, two law firms, namely The Schall Law Firm and Robbins Geller Rudman & Dowd LLP, representing investors who purchased Apple stock between November 2, 2018 and January 2, 2019, claim Apple tried to hide the poor market performance of the iPhone, instead leading to an inflated share price.

The lawsuit alleges that Apple didn’t disclose key details regarding iPhone sales, hiding the fact that shipments were declining. This approach helped the company increase the share price to more than $209 per share, according to the lawsuit.

On the other hand, Apple acknowledged in early January that iPhones sales dropped, and for the first time in many years it revised its expectations. Apple’s stock then fell more than $15 per share.Investors can join the case right nowAccording to court documents, Apple failed to disclose the following:

(a) the U.S.-China trade war had negatively impacted demand for iPhones and Apple’s pricing power in greater China;

(b) due to Apple discounting the cost of replacement batteries to make up for the Company’s prior conduct of intentionally degrading the performance of the batteries in older iPhones, the rate at which Apple customers were replacing their batteries in older iPhones, rather than purchasing new iPhones, was negatively impacting Apple’s iPhone sales growth;

(c) as a result of slowing demand, Apple had slashed production orders from suppliers for the new 2018 iPhone models and cut prices to reduce inventory;

(d) defendants’ decision to withhold unit sales for iPhones and other hardware, which was a metric relevant to investors and their view of the Company’s financial performance, was designed to and would mask declines in unit sales of the Company’s flagship product.

Investors who purchased Apple stock between the two dates can reach out to the two law firms in order to join the cases.

You can find the full details in the press releases embedded below.

 

 

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