Sales of the iPhone 16 have had a promising start in China, with a 20 percent increase compared to the previous model in the first three weeks, according to data from Counterpoint Research. This increase is a good sign for Apple, which hopes to accelerate its revenue growth next year. However, despite the market's optimistic expectations, some analysts like Nispel express skepticism.
In the last 10 years, Apple has experienced steady growth in its five geographic regions. While the company is expected to maintain this trend, Nispel believes that expectations for accelerated growth across all product categories and geographies may be unrealistic. Bloomberg recently reported that Apple is preparing to launch an updated version of its iPhone SE, aiming to compete in the low-end smartphone market.
Despite positive expectations, Nispel warns that the refresh of the iPhone SE may not be a decisive factor in boosting iPhone 16 sales. This is based on data from a survey conducted by KeyBanc, suggesting that consumers may not respond well to the new version. Apple's stock experienced a slight increase in the market following the analysis issued by Nispel, who downgraded the tech giant’s rating from sector weight to underweight.
The outlook for Apple during the earnings season is not as optimistic as expected by some analysts, as indicated by recent data and analysis. With Apple's earnings presentation scheduled for October 31, a possible increase in iPhone sales is anticipated after two consecutive quarters of declines. Nevertheless, Nispel points out that Apple has experienced growth across all its segments only a few times in the last decade, raising doubts about potential acceleration in growth in the future.
Despite mixed expectations in the market, investors show interest in both the iPhone 16 and the iPhone SE. While some believe that the iPhone SE upgrade could boost sales, others think it could cannibalize iPhone 16 sales. With these uncertainties in mind, Apple may face challenges in meeting high growth and performance expectations.
