I have written extensively over the last few weeks in regards to falling interest in Apple iPhone products. Apple’s current model outlook has become so abysmal that some analysts have cut both the company’s 2013 and the company’s 2014 forecast outlooks.
Case in point, the Consumer Intelligence Research Partners have found that consumers are choosing to pick up older iPhone models (iPhone 4S and iPhone 4) in place of the flashier iPhone 5.
While picking up any iPhone means a profit for Apple, older models come with a smaller profit margin and less social chatter about their newest features. Essentially, Apple is cannibalizing Apple.
UBS analyst Steve Milunovich on Tuesday cut his Apple iPhone sales figures for 2013 and 2014, estimating Apple earnings per share to come in at $44.68 in 2013 and then $52.80 in fiscal 2014. Milunovich’s 2014 estimate is a steep cut from his previous $55.84 prediction. UBC also believe Apple’s target price will hover around $650 instead of $700.
One of Apple’s biggest problems could be a lack of interest in higher-end models. For example, CIRP notes that iPhone 4S buyers often for an average of 30GB per model, while iPhone 5 smartphone buyers are opting for 20GB average. Essentially, fewer buyers are picking up the more expensive 32GB and 64GB models.
According to the survey, interest in older Apple iPhone models has increased by 50 percent.
Apple could turn the tides in 2013 with the release of a rumored entry-level iPhone device. Details about Apple’s upcoming plans have not been revealed at this time.
Do you think Apple can capitalize on the entry-level smartphone market with a new iOS device?