Apple’s iPhone is a hot seller. There’s no doubt about it. The iPhone continues to be the dominant device in the mobile wars, though Samsung’s Galaxy continues to give the iPhone a run for its money. And money is just what Apple will be talking about when it releases its earnings on Tuesday.
CNBC reports Apple is preparing its earnings report, and all analysts want to know is how sales of the latest iPhone model are propping up the rest of the tech giant’s figures. In the most basic sense, iPhone sales could either make or break Tuesday’s earnings report. But the financial news channel’s report indicates Apple could actually be hurt by solid iPhone numbers. Why, you ask?
“BGC Financials analyst Colin Gillis says a good iPhone sales number this quarter could actually mean bad news for December’s report.
“‘The key number for Apple is going to be the forward guidance for the December quarter, because that is where the [comparisons] become so difficult,’ Gillis told ‘Fast Money’ traders last week. ‘And if there is any hint that the iPhone cycle is beginning to slow, it’s going to pull the stock lower.'”
That’s right. Even if sales are strong, if they are slowing compared to last year, it will drag the stock down with it.
Gillis went on to tell CNBC that Apple’s iPhone sales in Tuesday’s earnings report are not just a sign of trouble for Apple, but would continue a trend seen across the mobile phone industry. He said the signs have been there for many months, pointing to a decline in the overall mobile market. Apple would be the latest indication of a slowdown that would not impact only the United States, but also the worldwide mobile phone market.
“Year over year, global mobile growth has slowed to 8 percent as the larger shift from mobile phones to smartphones edges closer to completion,” CNBC reported. “Gillis says that over time, the smartphone market will begin to mimic the mobile phone market, one of the biggest factors making investors nervous.”
With the shift to smartphones dominating the mobile market almost complete, it means companies like Apple will have even tougher competition with its rivals, like Samsung. With that in mind, some bloggers and analysts have started to look at future iPhone models and potential features.
Value Walk has a look at some of the potential features of the iPhone 7 (as yet unannounced).
“Central to this new approach will be the iPhone series eliminating the Home button, an innovation that has been predicted by many sources over the last couple of years,” Value Walk reported. “(Industry analyst Gene) Munster also believes that Apple will significantly increase the display size in the iPhone series in the next generation, ensure that the battery life is improved, and arm the market-leading smartphone with a new sapphire display. His belief is centered around the fact that the iPhone 7 represents a number change cycle, and therefore will be considered a new generation completely separate from the iPhone 6 and 6S.”
Munster and others have predicted the iPhone 6s models will not outsell its previous models, in spite of a large marketing campaign by Apple. The company recently released new advertisements for the Apple iPhone 6s, which focuses on the smartphone’s camera capabilities. Other smartphone lines, such as the Samsung Galaxy, have long been known for their camera functionalities and capabilities. The focus on cameras in the latest advertisements could be an attempt to win over individuals who may have been using Android operating systems in order to use the high-quality cameras. Or maybe it is Apple’s way of letting consumers know it’s cameras have caught up with its competitors.
What do you think? Join the conversation and let us know.
[Featured image by Stephen Lam/ Getty Images]