“People love Apple, but they still have limitations” – Analysts Lukewarm On iPhone & Apple’s Long-term As We Head Into 1Q-2018 Results

Ramish Zafar
iPhone X Was Responsible for the Drop in Apple’s U.S. Smartphone Market Share

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

Now that we've got Apple's 1Q results coming up, investors caution against optimism. This is a good thing, especially as Apple's share price is higher than it was at the same time last year. We wouldn't any unrealistic expectations right now. Before Apple launched the iPhone 7 and iPhone 7 Plus, in 2016, Wall Street already expected the year following to be a slow iPhone cycle. Investment banks claimed that this will reverse after a tenth anniversary iPhone, now official, as the iPhone X. With things heating up before Apple's 1Q earnings report due in just two days, we've got some opinions on what investors expect. Take a look below for more details.

Analysts Start To Question Long-held Assumptions About Apple; Believe Apple Does Not Deliver Value For Money Anymore

As the numbers start to flow in, firms start to downgrade their estimates. With recent production cuts and unsettling rumors, analysts are not sure of what to expect from Apple. At one point, we have the iPhone X. It's a device which according to Apple took years to develop and has a $1000 price tag. At the other, there are reports of this $1,000 investment going away from Apple's shelves. Although the latter are a bit extreme, even minor talk shouldn't take place.

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These have cumulatively resulted in a minor share price drop for Apple. Now, Barrons reports sentiments across several investors, which don't ring good for Apple. Investors will now consider other metrics to judge the company's performance. One particular metric, also touted during earlier reports of Super Cycle, is Average Sales Price. But will Apple's performance be sufficient to justify the switch?

RBC capital investments believes this could, "more than offset concerns around units." The main question on everyone's mind right now is how long can Apple successfully milk the iPhone? More than half of Cupertino's revenues are from the product. With Face ID, we've got interesting new avenues, which will last two cycles at the very best; before Android catches up. Samsung and the rest catch up fast, and Android is in no way behind Apple except for Facial Recognition; which did not achieve the popularity expected of it pre-September.

At this point, it's hard not to wonder whether Apple even cares anymore. Cupertino's got a big campus and plenty of models for Jony Ive to play around with. After all, even though he might be Apple's design force, product ideas do not originate from ID. Maybe things will change in the future. Till then, stay tuned and let us know what you think in the comments section below. We'll keep you updated on the latest.

News Source: Barrons

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