The consensus in Wall Street is that the latest flagship for the Steve Jobs-founded company was a letdown across the board – with sales being slower than expected in the quarter that ended in December and included the hot-for-sales Holiday season. They also expect the drop off to sharpen in the first quarter of 2018 – which ends in March.
Forecasted revenue guidance for the company has also suffered a cut, dropping to $60 billion from an average of $67 billion.
Furthering Apple‘s woes is the brouhaha stemmed from the now-acknowledged allegations of that it intentionally slowed down its older phone models, citing fears surrounding worn-down batteries.
Now sporting a gamut of iPhone models ranging from $350 to $999, the company has embraced a drastic turn of direction that drives it away from Jobs‘ premium-only products to a more iPhone-for-everyone angle.
With sales hitting a plateau, analysts are doubtful about Apple‘s ability to boost its revenue.
“Apple will have to answer the question of what’s next,” UBS analyst Steven Milunovich wrote in a note to investors. “More services to monetize the base of one billion customers and eventually enhanced [augmented reality] capabilities may be part of the answer.”
Even so, analysts are confident in that the company will, once again, post record revenue for the closed quarter – brushing the top of its $87 billion guidance for the soon-to-be-reported quarter. However, they are not as hopeful for the first quarter of this year and also expect the company to sell a smaller volume of iPhones over 2018 than initially expected.