Gadfly: Apple Has An iPhone Problem
Ahead of Apple Inc. (NASDAQ: AAPL)'s event this afternoon, Bloomberg Gadfly made a bold comment: Apple has a problem. And that problem is its iPhone.
"What is clear is the iPhone debut comes at an awkward time for Apple," Gadfly's Shira Ovide explained. The newest iPhone releases typically occur in the fall, and a spring release may indicate that the company feels the need to push sales in the interim.
"Apple hasn't said why it is releasing a new kind of iPhone. It may be pitching people who prefer a screen smaller than those on recent models like the iPhone 6 and its successors. The company may be trying to nudge people with older (sometimes very old) iPhones to trade up to new ones. A new phone now also props up sales in the next few months before the presumed introduction of the next iPhone."
"The company is in enviable financial health," Gadfly commented, "but panic has set in among Apple investors."
"Sales of iPhones are expected to decline this year for the first time since the device went on sale in 2007. For a company whose fortunes are tied to the ebb and flow of iPhone sales, the downward trend means big trouble."
Monday's afternoon event is speculated to feature an unveiling of a 4-inch iPhone, with the basic dimensions of the iPhone 5s, but the internal features of the latest models. Highlights of the newest phone are likely to include an improved camera, A9 processor, touch ID and integrated Apple Pay features.
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