36% Slump In iPhone Sales Set To Hurt Telstra & Retailers New Models Tipped To Be Discounted
Retailers and carriers who rely on the launch of a new Apple iPhone to drive last quarter sales may have to look for a new hero product with analysts tipping that the coronavirus is poised to spur a massive drop in iPhone sales.
According to analysts at Goldman Sachs they expect iPhone shipments to fall 36 percent during the last quarter of 2020 as customers around the world remain locked down due to COVID-19. They are also tipping that Apple could drop the price of their new premium models.
As a result, the US Company has downgraded Apple’s stock to “sell.”
Goldman added that it doesn’t expect Apple to launch the next generation of iPhone models until at least November — a two-month delay from the company’s usual September launch event — as limited global travel could delay its final engineering and production process and even then the uptake could be half of what retailers normally Expect from an iPhone launch.
One of the big losers could be Telstra who rely on iPhones to boost their slowing smartphone sales.
The bank noted that average selling prices for consumer devices — a metric that is normally strong for Apple due to the high price of many of its phones — are likely to decline during a recession and won’t bounce back quickly as consumers will be wary of Apple’s most expensive models.
“We do not assume that this downturn results in Apple losing users from its installed base,” Goldman analysts said in a note. “We simply assume that existing users will keep devices longer and choose less expensive Apple options when they do buy a new device.”
The downgrade sent Apple shares down 1.4 percent at closing Friday, to US$282.80.