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Wall Street straps down for weak Apple guidance

 (FinancialPress) — The date is set: Apple (AAPL) will reveal its Q4 earnings this coming Thursday. This brings about a bevy of speculation and fears, as investors look for signs of the iPhone X‘s success or failure in the consumer market.

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.

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