Apple Inc. is entering a critical period as it approaches its next earnings report, according to analyst Brian White. In a report to clients, White highlighted several factors that could negatively impact iPhone trends, including a struggling economy, increased competition from Huawei, and a saturated smartphone market. These factors, combined with only incremental updates to the new iPhone family, paint a bleak picture for Apple’s flagship product.
Although Apple released all four iPhone models simultaneously this year, which could potentially boost revenue growth in the September quarter compared to last year’s staged launch, White believes that the iPhone 15 cycle will be uninspiring due to market maturity and a challenging macroeconomic environment.
The company is scheduled to report its results on November 2 after the close of trading.
White also expressed concerns about regulatory issues and escalating geopolitical tensions, predicting that the darkest days of this downturn are still ahead. However, he maintains a positive outlook on Apple’s stock given the company’s services business.
Another analyst, Wamsi Mohan, from BofA Global Research, also expressed caution about Apple’s performance in the September quarter. While expecting a slight deceleration in revenue, Mohan believes that revenue and earnings estimates have likely reached their lowest point and does not anticipate further major negative revisions unless there is a major recession.
Mohan has a neutral rating on Apple shares due to potential sluggish trends in consumer spending offsetting the positive catalyst of a new product launch.
Despite recent losses, Apple shares showed signs of recovery during afternoon trading and were set to snap a six-session losing streak.