Published: Tue, May 01, 2018
Tech | By

DUH: Apple is 'disappointed' with iPhone X sales, so are we

DUH: Apple is 'disappointed' with iPhone X sales, so are we

In the leadup to the iPhone X reveal a year ago, analysts were visibly salivating at the prospect of an iPhone upgrade "supercycle", a tidal wave of profitability that would sweep Apple stocks to never-before-seen heights and truly enthrone Apple as the king of all smartphone makers.

Analysts say Apple should boost its capital return plan with its second-quarter report thanks to repatriated foreign profits.

The new iPhone will also include a new "touch film sensor" to the glass.

Face identification, dual cameras and 3D touch will probably all be missing from the new iPhone rumoured to drop in June during Apple's Worldwide Developers' Conference.

Apple said in February that it planned to eliminate what was then a $163 billion cash pile, net of debt, after repatriating capital accumulated overseas following recent United States tax reforms. By separating the touch sensor and the screen in this way Apple will be able to cut down on weight and the chance of damage.

We should know more about iPhone X sales on May 1, which is when Apple reports its financial results for the March-ending quarter. The most obvious speculation is the iPhone X Plus, which could be the larger counterpart of the iPhone X released in 2017.

There is also concerns over the price Apple is paying for components.

Despite significant increases in our dividend and buyback assumptions, we struggle to get to zero net cash within three years (hence the timing is likely longer term, or our forecasts are just too conservative).

Apple spent five years developing 3D Touch on its newer iPhone models. The reason? Kuo believes that Apple will be transitioning to a new type of display for its smartphones, and the new material set to be utilized would not be compatible with the feature.

Coming back to Apple, the company had a very weak Q1 2018, as demand for its iPhone 8 and X series declined sequentially in contrast to the Chinese market. For instance, a hard-press on the Photos app brings up a few options, including the Most Recent folder, Favorites, One Year Ago, and Search.

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