Some analysts believe that Apple’s next iPhone will not significantly affect the company’s business as many tend to think.
Mark Moskowitz, Barclays analyst, downgraded the future iPhone 8 from its overweight status branded on it. It’s not only the quality that is in question but also the market share. According to Moskowitz, Apple’s price target will decrease from $119 to $117. Those will literary make it difficult for the smartphone to manage its mobile phone business, reports Fortune.
While speaking to investors, Moskowitz said that “Maturation of the device-centric consumer electronics adoption wave could weigh on both Apple and the smartphone market. We also are concerned the China smartphone market could sputter for another year, which had been a major growth engine for Apple.”
He went on to explain that iPhone 8 will not break the recently established trend in which customers are continuously going back to older iPhones like the iPhone 6s.
It is rumored that Apple is working on a device that will introduce a complete redesign of the iPhone 7. Presumably, its name will be iPhone 8 but other analysts prefer using the name iPhone X or just iPhone. However, Apple is yet to announce any future smartphone plans.
However, Apple’s silence has not stopped and speculations from emanating from Cupertino.
Multiple iPhone Ranges in 2017
Unconfirmed reports suggest that iPhone 7s, iPhone 7s Plus and iPhone 8 will be the new 2018 iPhones. All the three will be almost identical but iPhone 8 will be differentiated by an all-new glass design, a curved screen and a lot of power under the hood.
In addition, Apple will move its Touch ID fingerprint sensor to under the glass. This marks Apple’s 10th anniversary.
The general perception in the streets is that iPhone 8 will be a big boost to Apple’s business. Moskowitz disagrees.
“Our conversations with industry participants have painted a somewhat subdued outlook for both the iPhone’s revenue growth and mix profiles,” he wrote.
His arguments are based on the declining iPhone 7 sales, which is blamed on the less-advanced features on the current device.
The other possibility for the iPhone 8 recording poor sales is because of the advanced competition from other smartphone makers. Current gadgets are able to meet the digital needs of most users.
But that does not entirely cast a shadow on iPhone’s future fortunes in the smartphone world. Moskowitz said that Apple still has numerous opportunities to grow more so from its services business, mainly Apple Music.