The iBulletin » News » JP Morgan’s gloomy forecast affects Apple share prices
News

JP Morgan’s gloomy forecast affects Apple share prices

With Apple’s share price at an all time high in the first quarter of 2018 at $180.10 , Apple has suffered a drop recently of 1.59% due to a research note by JP Morgan saying there is an expected decrease in sales expectations. On Tuesday, share price closed at $177.04  and lowered to $174.22 by Wednesday.

JP Morgan reduced it’s sales forecast from from $4.24 billion to $4.11 billion. Other financial firms are also getting of the iPhone X bandwagon, reporting that iPhone X sales were reduced from 31 million to 25 million in the month of March.

Apple is reducing production of the iPhone X as the $999 phone is not doing as well as they expected. With investors getting nervous about how the iPhone is looking in the eyes of consumers, share prices have taken a hit. With more consumers in the Asian market opting for cheaper options like a Samsung, Oppo Electronics or Vivo- the iPhone X is not selling very well in a very large consumer market. The phone also did not fair too well during shopping season in either Europe or the United States.

The iPhone X was supposed to draw in tons of revenue, as it was the first phone with a significant design change after the iPhone 6. So not only is Apple not making enough sales, but it was expecting to make a large amount of sales, which added salt to the wound for the company.

USB analysts reported that the amount of people looking to upgrade to the iPhone X fell from 43% to 37%.

About the author

Freya

Freya has had her share of experience with various media ventures before getting with The iBulletin. She has been an active contributor to a number of magazines and at The iBulletin, she writes editorials related to Apple, the brand and its business.