Apple Inc. AAPL is scheduled to announce its second quarter results after the market closes on Tuesday, and anxiety is growing among investors as speculation about an imminent decline in iPhone sales mounts. In the first quarter earnings call, CEO Tim Cook warned shareholders the second quarter could see iPhone sales tumble for the first time since the product was launched in 2007.
But, if investors already know sales are falling, why is the climate in the Street one of uncertainty? How big will the drop be?
According to Statista Data Journalist Felix Richter, analysts are modeling iPhone sales of roughly 51 million units, down 17 percent year-over-year. For the full calendar year 2016, renowned Apple analyst Ming-Chi Kuo (from KGI Securities) projects a decline of a similar magnitude; Kuo expects iPhone sales of 190 and 205 million units, which would imply a fall of 12 to 18 percent in relation to 2015.
Related Link: KGI's Dire Warning: Apple iPhone Sales Could Be Below 2014 Levels
“Despite the muted outlook for 2016, Kuo remains positive about the iPhone in the longer term,” Richter explained. “He expects iPhone sales to bounce back strongly in 2017, when, according to his predictions, Apple will release a significantly re-designed version of the popular smartphone.”
The chart below illustrates Apple's iPhone sales since 2007.
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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