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Morgan Stanley: iPhone sales are low, mainly blame the Chinese market

via:威锋网     time:2018/12/8 15:31:25     readed:286

According to foreign media Apple Insider, Katy Huberty from Morgan Stanley is the latest analyst to cut Apple's target price. She wrote in the report that iPhone sales were lower than expected, mainly because of China. The smartphone market is weak.

Morgan Stanley lowered Apple's target price for the next 12 months from $253 to $236. Despite other factors, the weak iPhone sales in China is cited as the main reason for lowering Apple's target price. After all, China is a major market for Apple. According to Katy Huberty, the problem is that consumers in the Chinese market have decided to hold their smartphones longer than ever, a phenomenon that has also occurred in other countries.

Katy Huberty pointed out: "Our recent meeting in Asia highlights the weakness of China's smartphone market, especially in the high-end market, where most suppliers are facing a decline in orders." This is based on many reports from the past few weeks. In the report, many Apple suppliers warned that due to the reduction in orders, the company's revenue will decline, or the employees will be adjusted.

It is worth mentioning that after Apple launched the 2018 iPhone, many investment companies and analysts have downgraded Apple's stock rating, in large part due to weak demand for iPhone XR. On Thursday, UBS lowered its target price of Apple from $225 to $210 on the grounds of weak iPhone demand. On the same day, Rosenblatt Securities also lowered Apple's target price to $165 due to weak market demand and problems with Apple's pricing strategy.

HSBC said in a report released on Tuesday that the growth of Apple's hardware division "has basically ended", and revenue growth can only be sustained by raising the average selling price of the iPhone. In mid-November, Guggenheim Securities lowered Apple's 2019 full-year revenue forecast from $281 billion to $273 billion. The company believes that the iPhone accounts for nearly 60% of Apple's revenue, but expects iPhone's revenue next year. It is too likely to grow substantially.

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