iPhone XS, XR ‘Allegedly’ Hurting Apple Stocks
The long wait is over for the newest iPhone models although they do come at a hefty price. The iPhone XS base model starts at $1,000 with improvements adding more numbers onwards. The iPhone XR is seen as the cheaper and budget-friendly alternative although folks will have to wait until October to get their hands on the handset that will be priced starting at $749.
The key thing here is that Apple’s pricing leaves a lot to be desired. This all started with the iPhone X, a variant that started the high-priced handsets from the Cupertino-based company. Having set the benchmark, Apple did try to address it by offering a variant with slightly lower specs. With the budgeting and marketing mix set, the company is expected to encounter up and down valuation – a trend most companies have to deal with.
For Apple, hearing that stocks have dipped is nothing new. They have endured adversity like any other successful organization and the same is expected moving forward. And this is something that Jun Zhang of Rosenblatt Securities seems to be trying to single out, Market Watch said.
According to Zhang, preorder levels for the iPhone XS and XR looked weaker compared to the iPhone X from last year. He came up with the conclusion by analyzing the iPhone wait times as well as the projected production volumes from manufacturers.
He digs deeper, singling out the numbers. According to him, Apple will produce 35 to 36 million iPhone XS and XS Max devices from September to December, 1 million less than what the iPhone X had in 2017. He forecasts 10 million iPhone XS models to be shipped in September alone with 15 million manufactured in that period.
Should this be a cause for concern for the company? Eran Dilger of Apple Insider begs to differ. First off, he singles out how Zhang is the same analyst who made the wrong report last year on the iPhone X. He lashed out at the report and mentioned how the iPhone X is one of Apple’s best-selling smartphones and that it has remained as one of the most popular choices for every quarter since then.
He goes on to question the basis of Zhang’s report, that of which is the preorder and production levels. On this, Dilger singles out how Apple does not present accurate day-to-day estimates for shipping and the numbers are erratic. They can change wildly with adjustments occurring when needed.
Despite the high-pricing and availability concerns, the only sure thing is that Apple stocks will be affected. On whether that would be up or downwards remains to be seen.