Apple launches three iPhone models
Apple (AAPL) is reportedly releasing three iPhones this year. According to the Wall Street Journal, Apple’s three new models will have new camera features. The most expensive model will have three rear cameras, while the other two iPhone models will have two rear cameras.
The new iPhone models will have a liquid-crystal display (or LCD) screen. However, Apple will switch to the organic light-emitting diode (or OLED) display for iPhones by 2020.
Apple’s new iPhone models come at a time when the company is facing weakness in iPhone sales. The company expects new models to revive iPhone sales growth, which has been declining due to sluggish demand for the XR model.
Weak sales of iPhone XR led Apple to warn its investors on January 2 about soft revenues for the holiday quarter. The iPhone maker now expects to report sales of $84 billion for the first quarter as compared to the previously guided range of $89 billion to $93 billion.
Apart from soft iPhone sales expected in Greater China, Apple anticipates the weakening economy in China (MCHI) (FXI) to dent iPhone sales. The $29 iPhone battery replacement program also significantly dented iPhone sales during the quarter. Also, there were fewer iPhone upgrades than anticipated, which dented iPhone sales. The US-China tariff war might also increase the cost of its products like Apple iPhones, Apple Watch, AirPods, Apple Pencil, HomePod, Mac Mini and adapters, and chargers.
After a significant cut in Apple’s sales guidance, Apple has also slashed its production plans for its latest models of iPhones by about 10% for the January to March period due to sluggish iPhone sales, according to a report by the Nikkei Asian Review last week.
Apple is the third-largest smartphone company
According to Counterpoint Research, Apple stands third by unit shipments and holds a market share of 12% in the global smartphone market. South Korean consumer electronics giant Samsung (SSNLF) has beaten Apple and became the largest smartphone company with a 19% market share. China’s Huawei was the world’s second-largest smartphone company by unit shipments at the end of the September quarter with a 14% market share.