Goldman Sachs: Apple faces major strategic decisions regarding the future of the iPhone

- Apple, like other smartphone companies, is becoming a victim of its own success.

- Happy consumers use older iPhones for longer and longer. Analysts believe that this phenomenon has a devastating effect on iPhone sales.

- If people extend the use of older iPhones for 0.1 years, iPhone shipments will be reduced by 8 million.

- Goldman Sachs stated that the shrinking market may prompt Apple to make a 'key strategic decision': Lead the iPhone to the low-end market to increase sales, or continue to stay in the high-end market at the expense of sales.

Apple will announce its latest quarterly earnings report after the close of the week. Wall Street is said to have entered the 'full panic' state.

This is the opinion of analyst Daniel Ives of GBH Insights in his report to clients. He expects the perfect storm of slowing demand released by Asian smart phone suppliers and iPhone X itself to be as high as $1,000. The impact of the sale price on the performance of Apple’s iPhone business will be revealed this week and will be quickly reflected in Apple's stock price.

History has proven that it is best not to take Apple’s performance as a bet because it is always surprising; however, prior to Apple’s release of the latest financial quarterly earnings, market analysts reached a consensus: Apple, like other smartphone companies, Is becoming the victim of its own success.

BMO Capital Markets said that happy consumers use older iPhones for longer periods of time, and this phenomenon will have a devastating effect on iPhone sales.

The company said: 'The extended use of smart phones will have a negative impact on shipments.' BMO said that the current life of Android phones has been more than 2.5 years, the iPhone is expected to move in the same direction.

BMO wrote in the investor report: 'Although we estimate that the iPhone will be upgraded more quickly than competitors' mobile phones, we believe that the frequency of upgrades will continue to deteriorate.'

BMO is not the only investment bank that holds this view. Oppenheimer said: 'The upgrade cycle of Apple's iPhone will inevitably be extended.' Goldman Sachs also said that it is unclear whether Apple can overcome people's increasing trend in smart phone upgrades. The more weary' the problem is.

According to BMO estimates, if people extend the use of older iPhones for 0.1 years, then iPhone shipments will be reduced by 8 million. In other words, customers are easily satisfied, which will lead to Apple iPhone sales rapidly decline.

Apple’s iPhone sales are expected to be between 50 million and 53 million during the fiscal year ending in March 2018. In the best case, this represents only a slight increase in iPhone sales compared to 50.76 million in the same period of last year. Growth, and this is still the case with iPhone X’s quarterly sales.

The iPhone X is the most expensive iPhone ever. It is expected that its sales may be disappointing, but it may also bring higher income. Goldman Sachs said that this gave Apple CEO Tim Cook a proposal. Severe problems.

The investment bank stated: 'Apple is facing a key strategic decision. Should the iPhone be introduced to the low-end market to increase sales? Or at the expense of sales, continue to stay in the high-end market?' Apple is also selling more affordable prices. iPhone SE, this model is a few hundred dollars cheaper than the iPhone X, but the new mobile phone sales come from new models, which forced people to question the price of iPhone X.

As the Financial Times pointed out in the UK, iPhone X may represent a 'terrible mistake' in the shrinking smartphone market, or 'a sensible move to increase revenue.'

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