Apple Inc. (AAPL, Financials) is grappling with a decline in market confidence after UBS revised its sales and revenue expectations for the tech giant's flagship iPhone, reflecting ongoing demand challenges.
UBS analyst David Vogt claims that, at 20.7 million units, iPhone sell-through numbers fell 8% in November from year before. Referring to Counterpoint Research, Vogt said that while total iPhone sales for the first two months of the December quarter came at 46.2 million devices, overall shipments, or "sell-in," most likely would be around 74 million units. This shows a 5% year-over-year drop that falls short of consensus projections by 3 million units.
One major downward adjustment in Apple revenue is With an average selling price of $908 per device, Apple income for the quarter is now expected to drop by 5%, therefore falling short of more general market estimates. This change runs counter to Apple's hopeful indications in its September earnings report.
Apple's Services section is still shining, however, as Vogt's forecasts for this division show because to great App Store success. Still, UBS cut its whole December quarter income forecast from $123.3 billion to $120.8 billion, a drop from its previous projection. Down from the prior estimate of $2.31, quarterly earnings per share are now predicted to come in at $2.25. Wall Street analysts, on $124.3 billion in income, expect $2.35 per share.
Apple is also trying to strengthen its position in China by providing discounts on iPhones as competition in the country becomes more intense. This action emphasizes the company's attempts to maintain its position in a key market against growing obstacles.
