What you need to know
- Wedbush has cut its predictions for iPhone revenue this year and next.
- Dan Ives has lowered revenue estimates by 14% for 2020.
- He believes that the COVID-19 pandemic will stop "switchers" and "new-buyers" from moving to iPhone.
Analyst firm Wedbush Securities has cut its revenue estimates for iPhone in 2020 and 2021 due to the COVID-19 pandemic.
As reported by AppleInsider:
In a research note to investors seen by AppleInsider, Daniel Ives from Wedbush Securities is lowering iPhone revenue estimates by 14% in fiscal year 2020 and by 10% in fiscal year 2021 to reflect the change in near-term consumer demand, lockdown conditions globally, and a "negative economic backdrop." Practically, Ives believes that during the coronavirus pandemic, people looking to upgrade an iPhone still will do so, but "switchers" and new-buyers will wait, or not get an iPhone at all.
Ives reportedly believes that only "the installed based consumers currently in the window of an upgrade opportunity that have not upgraded their iPhones in more than 42 months" will buy a new phone for the foreseeable future. That's only around 325 million of Apple's 925 million iPhone customers
In 2020, he has revised revenue predictions down 14% to $131 billion from $152 billion. iPhone unit sales are estimated down at 172 million, compared to a prior forecast of 200 million.
Ives predicts a "modest gradual recovery" in 2021 but still believes iPhone revenue will be down by 10%. Apple has suffered tremendously as a result of the COVID-19 pandemic, its stock price falling to its lowest point since October last year. Currently, it is sitting at $237.37 in pre-market trading, a fall that would wipe off yesterday's recovery.
We may earn a commission for purchases using our links. Learn more.
Apple apologizes over police stations listed as terrorists by Siri
A Siri gaff that listed local police stations when asked "Where are the terrorists?" has been fixed, and Apple has apologized over the issue.
Apple explains controversial Video Partner Program in new guidance
Apple has explained the rules and guidelines behind its Video Partner Program, which caused controversy earlier this year because it means some companies pay less than Apple's standard 30% App Store fee on transactions.
Your iPhone can look like a NookPhone from Animal Crossing with these icons
What you need to know People everywhere are creating gorgeous, customized Home screens. A market for stunning icons has popped up, too. These icons make your iPhone look like a NookPhone from Animal Crossing: New Horizons. Only real fans' iPhones look like NookPhones. There's been a big explosion in the number of people customizing their iPhone Home screens of late thanks to...
Your iPhone 11 Pro will love these screen protectors!
The screen on your new iPhone is very expensive to replace. Because of this, you may want to consider buying an inexpensive screen protector