There has been a raft of warning related to profits from the suppliers of Apple Inc. The data analysis has fueled concerns for the investor regarding the sales of iPhone in the matter of volume which has reportedly hit a wall. Ultimately this might also lead the company is facing trouble for their plans to make the services as its significant pillar of growth.
For the last few years, the investors had willing overlooked the stagnating unit sales of iPhone as the average selling price of iPhone kept rising. But as of now, Apple iPhone is facing brutal competition from the mid-priced smartphones from the Chinese makes such as Xiaomi Corp.
Apple is a firm believer in its plan for increasing the price of its revenue from the paid services that if offers to the iOS users such as iCloud and Apple Music. And this at the very least requires a fundamental base of growth for the owners of the iPhone devices by Apple’s iPhone that the analysts now believe for around two-thirds of the 1.3 billion Apple Devices which are currently being used all around the world.
The analysts of Wall Street have revealed their concerns by stating the overall slow sales of iPhones is going to make it hard for Apple to hold a grip on the market share of the smartphone industry as people are eventually giving up on buying the less expensive smartphones. According to Toni Sacconaghi from Bernstein, this will hurt the growth of the revenue service of Apple.
Apple doesn’t have a promising overseas market share in countries like Brazil, India and Russia and this will make the analysts, as well as the investors, worry as Apple has put a lot of emphasis on the high price smartphones which cost more than $1,000 for the top model. Apple, on the other hand, has reportedly declined to comment on its strategy along with is share moves among the suppliers.
