Netease Technologies News July 11, according to foreign media reports, former Apple CEO John Sculley said in an interview recently that the biggest problem facing Apple is how to cope with the declining demand for high-end iPhones.
The biggest problem Apple faces is how to maintain its market share in China, where many people are dissatisfied with the product, said Scully. This is a bad time for Apple, because in any case, Apples sales of the iPhone have slowed significantly.
From 1983 to 1993, Scully served as CEO of Apple and was replaced by many challenges that Apple faced as a result of his decision-making. Although he has been out of office for a long time, the venture capitalist today is known for criticizing Apple. An Apple spokesman declined to comment on Scullys comments.
But Wall Street people who are more interested in Apple in 2019 may agree with Scully. On Monday, Rosenblatt Securities downgraded Apples stock (up 29% so far this year) and announced that it would be sold.
Analysts wrote that although they did not think Apples stock was short, the company would face a fundamental deterioration in the next six to 12 months. In addition, sales of Apples new iPhone may be disappointing, and analysts expect revenue growth in its services business to slow down.
We dont think that sales of the iPhone will improve much fundamentally, and we are more worried about the second half of the year, said the analyst. At the same time, Googles upcoming 5G smartphone will put pressure on Apples market share of the iPhone.
Just a few days ago, Citigroup analyst Jim Suva again lashed out at Apple before its July 30 report was released. Our sales and earnings per share expectations are still below Wall Streets average expectations, and we expect stock prices to fluctuate in the coming months, as the market is generally expected to decline, he said.
Suvas Apple report to customers at the end of May attracted market attention. Suva cut its sales forecast for the second half of 2019 by about 7 million units due to concerns about Chinese demand. The analyst then substantially lowered Apples sales and profit expectations.
We are dramatically lowering our sales expectations for the iPhone because we believe that as Chinese people prefer to buy local brands, this may lead to a slowdown in demand for Apples iPhone in China, Suva said.
Interestingly, Suva still rated Apples stock as buy and seemed to place more emphasis on the long-term value of the company than on the re-acceleration of sales or profits in the short term. In his latest letter, Suva warned: We still maintain our buy rating, but expect fluctuations in Apples share price in the future. (Small)
Source: Responsible Editor of Netease Science and Technology Report: Wang Fengzhi_NT2541