An analyst has reported that Apple’s move to lower down its iPhone prices in China is helping the company rebuild it’s Q1 2019 Earning dip.
This is according to UBS analyst Timothy Arcuri in a note he sent to investors regarding Apple’s performance entering March, Business Insider reports.
Arcuri sent investors through USB a note outlining why it believes that this is the end of ‘worst of the bad news’ for Apple in the Chinese market and more.
UBS revealed that Apple had cleared its iPhone inventory in China and it’s supply chain ‘tone’ is also improving.
“While March mix is still bad, the tone in the supply chain is starting to improve, and price reductions in China may be starting to clear channel inventory,” Arcuri says.
UBS has increased its June quarter estimate for iPhone from 3.25 million units sold to 3.45 million sold. Arcuri said however that this increase is not necessarily due to the increasing success of 2019 iPhones. He claimed that people’s interest in iPhone 8 Plus and other older iPhone models is ‘offsetting’ a performance drop in new iPhone models like iPhone X.
Taking into account the higher sales of older iPhones rather than more expensive newer models, UBS has dropped its revenue estimate for AAPL to $56.5 billion for the March quarter. The firm had previously estimated $57.5 billion.
It’s not all bad news for the 2019 iPhones, though. UBS says procurement estimates for the iPhone XR are actually on track to increase quarter-over-quarter. This is an uncommon occurrence for an iPhone this late in its life cycle:
“While March mix is still bad, the tone in the supply chain is starting to improve, and price reductions in China may be starting to clear channel inventory,” Arcuri wrote. “Procurement estimates for XR are now up Q/Q in June – atypical for this late in a ‘new’ model cycle (good near-term for QRVO), but reflective of inventory burn.”
After poor iPhone performance in China caused Apple to revise its Q1 2019 earnings, the company lowered iPhone prices in the country.
During an interview, Tim Cook, Chief Executive Officer t Apple, said that only time would tell if this strategy will work out for Apple.
With the shaky financial year ahead of Apple, rumors have surfaced regarding its release of two iPad models this year.
If the rumors are true, this will be Apple’s update to the iPad line in the last four years. Sources reveal that Apple is about to launch Apple iPad and iPad Mini 5 as certifications of both products have popped up recently.
Both products popped up on a certification document posted on the Bureau of Indian Standards (BIS) website. The two models are referred to as A2124 and A2123. Their appearance at this stage suggests that a release has been approved in India and will surely be launched soon.
The listing, as spotted by MySpartPrice, contains the same certification details as that posted by Eurasian Economic Commission (EEC) at the end of January. Same model numbers – A2124 and A2123 – are contained by the documents as well.
No other details were revealed in the ‘leak,’ but the EEC document discloses that the new iPad models will be produced and manufactured by the Hong Fu Jim Precision Electronics.
No specific dates were released regarding the launching of two new iPad models, and experts suggested that Apple might just release the product in Apple stores with only a press release to announce its availability.
Apple is rumored to host an event at the end of March (25 or 26), but it was said to focus on services and software, not hardware.
Meanwhile, the world has seen the lowest price of Apple iPad in the market today. Amazon is selling iPad models with $80 to $100 discounts, a price similar to their Black Friday offers.
IPad Pro, iPad’s 11-inch tablets are sold for only $699.99, and it’s 256 GB version is sold for $849.99. The ultra-light iPad Pro features an advanced 11-inch Liquid Retina display that goes edge to edge for a more expansive screen. The tablet packs 64GB of storage and features up to ten hours of battery life. The iPad Pro has also replaced the home button with a 7MP front-facing camera with Face ID so you can securely unlock your tablet, log in to apps, and more with just a glance.
Current generation models, Apple iPad (Wi-Fi, 128 GB) and Apple iPad (Wi-Fi, 32 GB) are being sold by Amazon for only $329.99 and $249.99, respectively.
Rare Amazon deals like this are expected to sell out quickly, so you better hurry up!