iPhone Sales Plunge 67%, Content Future Looks Rubbery
Later this month Apple will roll the dice and they are hoping that their numbers will come up as they try to extract new revenue flogging content as iPhone sales are plunging by up to 67%.
The only problem is that Wall Street analysts are not convinced about the big iPhone makers future claiming demand for Apple’s flagship handsets is getting worse and revenues from content is not assured as Hollywood Companies such as Disney are also making moves to capture new content revenue share.
Observers claim Apple is making a billion-dollar bet on its own on-demand television service that is tipped to launch in 2019.
The streaming platform, which will rival popular services Netflix and Amazon Prime Video, is set for release as early as next March, reports suggest.
Since October 2017, the firm has bought a dozen projects – nine of which have been green-lit for a full series.
The shows are backed by a budget that is set to top $1 billion (£760 million).
The annual rate of decline for Apple iPhones in the month of February 2019 is down 67 per cent based on last year and this is similar to the weakness in January and December UBS analysts have said.
‘With iPhone demand acceleration on the horizon, we currently do not see any catalysts near term to drive significant [profit] upside,’ Shawn Harrison, an analyst with Longbow Research, wrote in a note to clients, according to Bloomberg.
Earlier this year Apple announced it would slash the price of iPhones outside the U.S.
Instead of pegging the device’s price to the strong U.S. dollar, it would instead peg it to its retail value in local currencies, offsetting the price tag considerably.
In the most recent quarter, Services revenue reached $10.8 billion, in line with Wall Street estimates.