The Apple iPhone 11 has been in the news a lot of late with the latest bit of information talking about the logic board and the inclusion of a larger battery. While the iPhone will be a great handset, it won’t make a significant impact on the market.
Rosenblatt analysts have released their report and looking at the iPhone 11 they have decided to downgrade Apple’s stock rating from neutral to sell. The analysts state that the new iPhones will be disappointing and Apple’s services revenue growth will decelerate.
The Apple iPhone 11 is expected to launch in September and will come with a new triple-camera configuration that will serve well in night photography. The new handsets are also expected to support bilateral wireless charging allowing users to charge other smartphones that support wireless charging or the new Apple AirPods. The next iPhones will look almost identical to the current models except for the rear where there will be a square camera hump.
As of now, it remains to be seen if these enhancements will drive adoption as Apple will seek to avoid the historic earning guidance miss witnessed with the iPhone XS/XR cycle. This slow growth was mainly due to the drop in sales in China.
The report goes on to state, “iPad sales had rebounded in the months following the radically-redesigned 2018 iPad Pro and early 2019 updates to iPad mini and iPad Air. However, Rosenblatt says that iPad sales growth will also slow down in the second half of the year, probably because there are no firm rumours of a Pro model refresh in 2019 yet.”
The Apple stock fell by as much as 1.8 per cent with it reportedly sitting at USD 201 level on the release of the Rosenblatt report. The very same analysts expect the stock to fall to as much as USD 150 in the next 6 to 12 months.
