Is Apple’s iPhone 6s/6s Plus off to a rough start?
According to a report from Credit Suisse, the demand for its latest phone is “weak,” as the report indicates the company’s Asia supply chain orders have slowed. Following the release of this report, Apple’s stock took a hit.
In premarket trade alone, Apple’s stock fell 2 percent. By midday, Apple’s stock had dipped 2.9 percent.
Credit Suisse analyst Kulbinder Garcha indicated that Apple has lowered its component orders up to 10 percent, which could have a trickle-down effect on the company’s earnings. Garcha estimated that Apple will sell 222 million iPhones in 2016 calendar year, which is 20 million less than his initial forecast. He also lowered his fiscal year 2016 EPS estimates by 6 percent as a result.
“In our view, the continued weak supply chain news could weigh on Apple shares for the next few weeks/quarters,” Garcha said.
But on an optimistic note, the analyst did note that Apple has the ability for high retention rates, the ability to grow its user base and the option to draw in new users with its 4-inch iPhone.
Apple’s iPhone 6s launch had initially rolled out smoothly, but the the latest iterations of iOS 9 have reportedly been causing some difficulties for iPhone users.
Over the last several weeks, the harder Apple tries to patch holes and fix bugs, the more new ones seem to turn up. The problem may just be speed itself — Apple has pushed three updates in four weeks — and as of iOS 9.1, things are still looking a bit shaky.
Even though 9.1’s change log reflects that 11 out of 13 new features are bug fixes, it seems they’ve introduced a pretty big one. Touch ID doesn’t work anymore for many users, according to the report.
Perhaps that’s weighing in on the demand for Apple’s latest iPhone.
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