Sagging demand for the iPhone shows no sign of abating
Analysts' estimates of Apple's second-quarter results indicate a drop of nearly 13% in profitability, and sales falling 5.9% compared to the prior year
New York — Apple continues to struggle with iPhone demand, with trends going “from bad to worse”, according to Longbow Research. “Without iPhone demand acceleration on the horizon, we currently do not see any catalysts near term to drive significant EPS (earnings per share) upside,” wrote analyst Shawn Harrison. He affirmed his neutral rating on the stock and said the lack of a rebound in iPhone sales creates risk and shifts more focus to Apple’s March 25 event, where the company is expected to introduce a video programming service and premium magazine subscription plan. Shares of Apple gained as much as 1% in early trading Tuesday, after rising 3.5% on Monday, their biggest increase since January. While the stock has rebounded 27% from a January low, Apple remains more than 20% below record levels reached in October. Much of the stock’s weakness over the past few months has been related to weakening demand prospects for the iPhone, particularly in China, an increasingly important m...
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