The economic downturn, the uncertainty on the UK stock market and other economic consequences caused by the decision of inhabitants of the country of withdrawal from the EU, leading to lower demand for Apple products. This was announced by Citigroup Global Markets analyst Jim Suva.
According to the expert, economic sleep and volatility in the stock markets is now imminent for England after the decision on withdrawal from the EU. After that the problem start for Apple, as users will be less to buy “Apple” products. In turn, this will reduce earnings of American corporations, for which the UK is one of the key markets.
“The result of the referendum in the UK was another problem for Apple customers, the company does not acquire a new iPhone as often as it would like company. In this regard, the financial results of Apple are lower than the forecasts of wall street” — said an analyst with Citigroup Global.
Suva noted that the forecasts of analysts with Wall Street in this regard can be erroneous.
The decline in sales of Apple technology is not only a British referendum, the expert believes. California giant is experiencing difficulties in finding new buyers as a high-tech smartphone is already available in most countries of the world. The demand is increasingly eroded by other manufacturers offer devices with similar functionality, but at a more affordable price.
According to Suva, the average frequency of replacement by users of old iPhone to new increased from 2 years to 28 months and continues to grow. This trend for the first time in 13 years led to the decline in Apple’s sales.