iPhone 5 Could Fail To Surpass iPhone 4S, Analyst Reports

Could the end of the Apple iPhone era already be upon us? A new analyst report believes the iPhone 5 may not surpass sales created by the company’s iPhone 4S smartphone. News of slowing Apple iPhone sales and poor reception to the iPhone 5 in China last week has caused Apple shares to plummet by 25 percent since a September high of $705.07.

UBS analyst Steve Milunovich has cut back Apple’s fiscal 2013 and fiscal 2014 estimates to $700 per share from a high of $780. Milunovich also cut his iPhone sales estimates by 5 million units and his iPad sales by 2 million units.

Apple’s biggest worry may comes from the analysts supply chain sources. Milunovich notes:

“Some of our Chinese sources do not expect the iPhone 5 to do as well as the iPhone 4S.”

Based on his expectations, Apple may drop sales figures to just 25 million units in Q1 2013.

Decreasing sales and a lack of interest in the iPhone 5 may explain rumors that Apple plans to quickly produce an Apple iPhone 5S for an early summer release.

In more bad news for shareholders, Milunovich has reduced his Apple earnings to $47 per share in fiscal 2013, down from an earlier call of $51.50. Earnings estimated for 2014 are also down from a high of $62 to $55.85.

Apple shares were trading down by 4% in early Friday trading but rebounded to a 3% decrease while closing the morning session at $511.76.

Despite slowed Apple iPhone 5 sales, a recent survey found still high levels of brand loyalty among Apple iPhone, iPad, and Mac product users.

Do you think the era of the Apple iPhone is already drawing to a close?