The latest reports concerned iPhone sales seem negative. Many of the analysts feel its sales volume would decline in the first quarter as it did in the last quarter (YOY). They assume such situation will last till the end of this year.
iPhone sales have never encountered the deline on the year-on-year basis. Most of the revenue and profit that Apple earns is from iPhone. Therefore, the decline of iPhone sales volume seems to be a bad sign to Apple. Apple share price decreased by 8% this year, while 20% since last December.
Morgan Stanley estimated Apple has potential to make a bright turn for this situation in the second quarter. It reported that the downturn of iPhone sales volume would end in this quarter and increase lightly next quarter.
Morgan Stanley the launch of 4-inch iPhone 5e in April will attract more fans to buy iPhones in this spring. Till September of 2015, iPhone 5e brought extra 15 million units’ sales volume for Apple.
All the iPhone predecessors ahead 2014 were 4-inch screens. To rival with Samsung Galaxy series, Apple released bigger screen iPhones.
Nikkei news reported Apple might cuts 30% of its iPhone 6s and iPhone 6s plus shipments in the first quarter that led to a great reduction of its share price. Apple suffered a great loss due to this news. WallStreet analysts readjust its target share price.