In recent times, analysts predict a decline in iPhone shipments due to weakening demand for Apple’s smartphone. In 2016 supposedly expected first fall of sales in the history of smartphone. Brean Capital analyst Ananda Baruch did not agree with such forecasts.
In his report to the Baruch recommends investors buy Apple shares, valuing the target price of securities of the company at $170 (now about $107). He recommends that you do not pay attention to the messages from the chains. According to analyst expectations, in 2016, Apple sells about 250 million iPhones, which is 7-10% compared with last year.
“We believe that iPhone sales will support 4-inch iPhone, which will be released between March and April and will provide additional 15-30 million smartphones in 2016. According to our forecasts, the iPhone shipments next year will reach 250 million (5-10% more compared to last year)”.
One of the factors in the growth of iPhone sales, the analyst calls the new 4-inch iPhone. The phone will replace the iPhone 5s and is designed for a niche small communicators for the budget price, where Apple traditionally could not compete with Android-based smartphones. The price of new items is expected in the range of $400 to $500.
A number of experts who forecast a drop in demand for iPhone, refers to the fact that manufacturing partner Foxconn allegedly reduced the number of overtime shifts at the plant in the Chinese city of Zhengzhou. However, the company itself has declared that the enterprise works in a regular mode, and holiday weekends will be scheduled based on the current rules and requests of the employees.