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Apple ( AAPL ) shares have tanked since the company late last Tuesday reported its first year-over-year decline in iPhone sales and guided handset sales lower for the current quarter. But it’s not just Apple. The overall smartphone market is in decline as users see little reason to upgrade to new handsets. “The smartphone decline is just beginning and we don’t see any reason that the overall smartphone market will recover going forward,” Rosenblatt Securities analyst Jun Zhang said in a research report Wednesday. “Smartphone demand is becoming a big issue and smartphone features are not boosting demand anymore.” Those were among his key takeaways from Q1 earnings reports released so far by smartphone makers and their component suppliers. He predicts that technology upgrades will slow for smartphones. He does not see virtual reality and augmented reality applications boosting smartphone sales in the near term. And Apple faces downside risk from expectations possibly being too high for the upcoming iPhone 7, Zhang said. “The market might think the worst is over after the June-quarter guidance,” he said. On Tuesday, Apple stock rose 1.6% to 95.18, ending an eight-day losing streak . But shares turned south again on Wednesday and were down more than 1%, near 94, in afternoon trading on the stock market today . Last month, research firms Juniper Research and Strategy Analytics reported that global smartphone shipments fell, for the first time ever, on a year-over-year basis in the first quarter. RELATED: Apple Investors Worry That Glory Days Are Over Scalper1 News
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