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Apple’s new budget iPhone SE is selling better than expected. This is shown by an analysis of the delivery time, the work of the expert in TF Securities, Ming-Chi Kuo.
However, despite these figures, Kuo continues to predict that iPhone shipments in the second quarter may decrease by 20 or even 25% year-on-year, due to declining demand stemming from the Covid-19 pandemic.
Apple warned in February that it would not meet its sales targets in March due to declining demand in China, as well as production problems stemming from the second world economy’s response to the new coronavirus pandemic.
However, Apple’s warning was issued before the pandemic spread worldwide, including in California, the United States, where Apple’s headquarters are located. This has led to the blocking of much of the activity. Therefore, the situation is different now.
Apple showed off its most affordable iPhone
Second generation iPhone SE starts at $ 399
Last week, in the midst of the crisis, Apple released its new iPhone SE budget. The model became the first to launch without a major event for its introduction.
The iPhone SE uses the classic iPhone design, which was first introduced in 2014. The phone has been updated with modern chips and cameras. It is the lowest priced phone in Apple’s current range, with sales starting at $ 399 in the United States.
Kuo argues that higher-than-expected sales on the iPhone SE suggest that consumers are now turning to smartphones at more affordable prices, which has an impact on Apple’s businesses and component companies.
According to the analyst, the biggest coronavirus challenge for smartphone manufacturers now is lower consumer confidence and low purchasing power after the pandemic erupted and unemployment rose. As a result, users prefer to choose models with lower prices and consequently lower parameters.
Apple May Delay Release of New iPhone Models for “Months”
Since 2011, the company has traditionally organized this event in September or October.
After all, Kuo is not optimistic about iPhone sales in the second quarter, as countries around the world continue to block their borders and companies to curb the spread of Covid-19. And all of this has a negative effect on consumer confidence and demand.
“We reduced our forecast for iPhone sales in the second quarter by 30% to 35-37 million due to the negative effects of the coronavirus. However, the situation could be even worse,” he said.
Kuo also argues that investors in Apple and its supply chain should focus more on the effects Covid-19 has on consumer demand rather than Apple’s ability to launch new products.
According to the analyst, Apple may now cancel the launch of some of its models. He expects the model, scheduled for release in the spring of 2021, to be unveiled in the fall of that year.
Meanwhile, everyone is looking forward to the financial statement of the financial giant, to be released on April 30.
Apple limited iPhone sales to two due to coronavirus
The company introduced such restrictions in 2007, when the first iPhone was introduced.
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