What you need to know
- Spending data suggests Apple's iPhone sales have fallen dramatically because of store closures.
- KeyBanc estimates that iPhone sales fell 56% year on year in March.
- Analyst John Vinh also says that the average selling price has also seen a significant decline.
A report suggests that spending data could reveal iPhone sales are down as much as 56% in March compared to last year due to Apple store closures.
As reported by Seeking Alpha:
KeyBanc says spending data suggests that Apple's (NASDAQ:AAPL) U.S. iPhone sales fell 56% Y/Y in March due to the retail store closures, and online sales haven't been able to compensate.
According to the report, analyst John Vihn also writes that "blended ASPS dropped 20%" year on year, a "significant" decline. He also states that the trend for Apple's suppliers will also be negative, and only recommends purchasing Broadcom.
Apple made the decision to close all of its retail stores on March 14. Prior to that, stores in China as well as Italy had been closed for an extended period. On March 17, Apple changed the wording of its closure notices to state that stores were closed "until further notice", and the most recent reports have suggested that Apple stores may remain closed until at least Mid May.
A huge cash cow for the business, there can be no doubt that Apple's retail stores closing will have had an enormous impact on Apple's revenue streams. With no sign of stores reopening anytime soon, it is highly likely that we can expect similar reports for the month of April. Apple recently announced its Q2 earnings call, set to take place on April 30. It has already downplayed previous revenue guidance and reiterated that it does not expect to meet its targets.