With the much-anticipated release of the iPhone 15, Apple Inc. (NASDAQ: AAPL) saw a modest increase in its shares.
The new model, revealed earlier this month, features several upgrades, including a revamped camera, extended battery life, and a novel titanium frame.
Unveiled at the annual “Wonderlust” event on Sept. 12, the iPhone 15 drew crowds at Apple’s flagship stores worldwide, notably in Shanghai and India, marking its global debut.
The initial consumer reception and upcoming holiday season demand are crucial for the smartphone’s success, especially since the pricing strategy remains unchanged, with the high-end iPhone 15 Pro Max tagged at $1,199, according to The Street.
However, the tech giant is navigating through turbulent waters as iPhone revenues have slowed in recent quarters.
“Market indicators from competitors and supply chain partners hint at a potential dip in demand, attributed to a contraction in consumer spending and sustained inflation across major economies,” said Benzinga.
The reported Chinese ban on iPhones for government officials and employees of state enterprises adds another layer of complexity to Apple’s sales strategy in a key market.
Additionally, financial constraints faced by U.S. wireless carriers might impact the support available for customer upgrades.
Compounding these challenges is the resumption of student-loan payments in the U.S., predicted to subtract around $100 billion annually from consumer spending, as per Oxford Economics.
Nevertheless, Dave Novosel, an analyst at Gimmie Credit, forecasted a rise in iPhone revenue in the upcoming fiscal quarter, citing attractive carrier deals, a surge in pre-orders and a preference for premium models.
“However, we expect growth to slow from that point forward, leaving iPhone sales up roughly 5% for the full year,” said Novosel to The Street.
On the day of the launch, Apple’s shares experienced a 0.68% ascent, closing at $175.11, thereby mitigating their one-month decline to about 1.1%.
© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.
Produced in association with Benzinga
Edited by Judy J. Rotich and Newsdesk Manager
“What’s the latest with Florida Man?”
Get news, handpicked just for you, in your box.