According to a Goldman Sachs analyst, Apple’s latest slump in iPhone sales is the starting of the end of Apple. Rod Hall from Goldman Sachs has compared Apple to Nokia, which ruled the smartphone industry once but soon fell to competitors, reports Cult of Mac.
Halls’ theory rests on the fact that just like Apple, Nokia has also started relying on customer upgrades after populating the market with its devices. Nokia started witnessing fall in sales of new devices as people started waiting more for the upgrades.
Tim Cook yesterday issued a letter to investors stating that people bought fewer new iPhones because they repaired their old ones. He admitted that Apple’s cheap battery replacement program is one of the reasons behind slower iPhone sales.
“Beyond China, we don’t see strong evidence of a consumer slowdown heading into 2019, but we just flag to investors that we believe Apple’s replacement rates are likely much more sensitive to the macro now that the company is approaching maximum market penetration for the iPhone,” Hall says.
He said that Goldman Sachs has been warning Apple about lower demand for iPhones in China, but the company failed to pay heed. The situation is less likely to get better in March and stats of FY19 largely depend on iPhone sales figures in China in early 2019.
Reportedly, Apple’s shares have fallen 9% after Tim Cook’s revision in revenue.
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