iPhone X Expectations Are 'Still Too High' [Report]

POST

MAIL

Posted January 2, 2018 at 6:08pm by iClarified

Despite a recent correction, iPhone X volume expectations are 'still too high', according to a new report from CLSA via CNBC.

CLSA warned clients on Tuesdsay that the market is still too bullish on shares of AAPL based on lower fourth quarter expectations and 1Q18 numbers that are unlikely to improve. A recent report from Taiwan's Economic Daily claimed that Apple's first quarter forecasts for the iPhone X have been slashed to 30 million from 50 million.

"We maintain that 2017 fourth-quarter iPhone X volumes were at 30 to 35 million and we are very skeptical that volumes will increase in the first quarter of 2018," CLSA analyst Nicolas Baratte wrote in an note Tuesday. "This does not reconcile with the expectation of pent-up demand or push-out to the first quarter of 2018 in our opinion: consumers who wanted to get an iPhone X in December 2017 already have it."

Baratte believes that analyst expectations of over 35 million iPhone X units sold in Q1 'will prove too high'.

In contrast, Piper Jaffray has reiterated an overweight rating for AAPL with a price target of $200 following a recent survey of iPhone users.

"Our survey of 400 iPhone buyers indicates that iPhone X and iPhone 8 mix is similar to our expectations, increasing our confidence in average selling price assumptions for the current quarter and FY18," he wrote on Tuesday. "Our iPhone average selling price assumption of $720, therefore, appears achievable, increasing our confidence in revenue and earnings per share estimates."

Both Baratte and Olson say a price cut could be an option if sales volumes are lower than Apple would like.

"We expect a lower priced X-gen option (likely the current iPhone X with a price cut) and we wouldn't be surprised to see a 'plus' X-gen model in 2018," added Olson.

Read More

iPhone X Expectations Are 'Still Too High' [Report]

Follow iClarified

gamerscul9870 - January 3, 2018 at 4:40pm

Did the massive success of his salary from iPhone sales mean nothing to you? Relying on the past success? Yeah right. Products late to the show? I'll have you know the Homepod was originally built as a music speaker instead of trying to be the next echo, which is what they are preparing for next. Here's an interesting side note, some years later we finally get features that many have been doing for years except with a beefy upgrade. When it comes to delays though, this so-called chocking and blind sided blah blah blah isn't what you expect it to be because a company may not have the parts to do what many others have been doing for so long. With that said, this doesn't mean that they are behind, it takes to to set things right and no comoany is perfect admiringly, but this doesn't go against the success Apple can still crank out in the end. if expectations are too high and people are happy with it, it worked out for a reason. It's called having to common sense and taking the time to understand what fixes what originally didn't work. For example, the home button that was replaced with a notch can have the home button back. This feature is something that's been a thing and as of now has been more focused on called assistivetouch. You basically have the near perfect home button back on the phone. Not so hard now was it and yes I have used it. So there, all cleared up now! -Obama preach.

Reply · Like

Userone - January 3, 2018 at 2:24pm

Take it easy man!

gamerscul9870 - January 3, 2018 at 4:33pm

*INfamous.

gamerscul9870 - January 2, 2018 at 7:21pm

If the iPhone is dust proof that basically means the whole phone in general. I don't know where you get your claims against make believe problems of yours Mukai, but I do know these tactics well enough to not be so blinded by your hatred against the success of these products. Sorry not sorry.

Userone - January 2, 2018 at 9:00pm

Let him vent his opinions. People's comments like his made Apple to change our batteries at 29$ and admitting of software manipulation.

gamerscul9870 - January 2, 2018 at 11:06pm

What if his 'opinions' manipulate consumers into listening to him? Imagine how not so serious an opinion can be taken just because of that one person who pointed what they want to hear out. He won't rest until what he expects to be real actually happens.