iPhone Buyers Continue Trend Of Opting For Higher Storage Despite Dwindling Sales: Report
Portfolio Pulse from Benzinga Neuro
A report by Consumer Intelligence Research Partners (CIRP) indicates that despite a decline in iPhone sales, consumers are increasingly opting for models with higher storage capacities. This trend is contributing to a higher average sales price for Apple Inc. (NASDAQ:AAPL). Although iPhone revenue fell by 2% YoY in 2023, the preference for more storage could help maintain Apple's average sales price. KeyBanc Capital Markets analyst Brandon Nispel is concerned about the impact of weak iPhone sales on Apple's stock, especially after a challenging December quarter. However, Apple's iPhone production in India has hit $13.5 billion, potentially mitigating some sales decline. Sales in China are predicted to fall, which could further affect Apple's revenue in 2024.
January 11, 2024 | 8:30 am
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Apple Inc. is experiencing a consumer shift towards iPhones with higher storage, which could help maintain its average sales price despite a general sales slump and a 2% YoY revenue drop in 2023.
The preference for higher storage iPhones may help stabilize Apple's average sales price, which is a positive sign for the company's revenue. However, the overall decline in sales and the specific mention of a challenging December quarter suggest that any positive impact may be offset by broader market challenges. The production increase in India is a positive development, but the predicted decline in China, a significant market for Apple, could pose further risks to revenue.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90