Apple has been putting in money towards expanding services providing as to not be totally depended on services. But according to a tech analyst, the share price still depends on hardware sales and particularly the iPhone.
Apple’s earning beat most analyst expectations but the result left Wall Street with a lot to think about. According to the report there was massive growth in services and non-iPhone items but iPhone sale were down by 12%. Some analysts believe Apple’s future lies in the diversity of the service provided but according to Yahoo Finance it’s not that simple. Stating that “If there is further incremental weakness in the iPhone, it is going to be difficult for the stock to go higher .”
Shan Harrison told Yahoo Finance that the iPhone is one of the most profitable products Apple sells. Right now iPhone sales made up to 56% of Apple’s revenue while this year we see a drop to 48%.
If there’s a drop in iPhone sale during the September and December quarters, Apple is going to have a huge problem on its plate. The iPhone is a very essential product to the company and without it most of the other products won’t sell. It is the heart of the entire ecosystem.
Apple has to keep iPhone sales stable and growing again as to avoid another drop. It’s safe to say for that increase in sales of the iPhone would bring increase in services provided. It is nice that Apple is trying to expand and have multiple income sources but they need to get the iPhone going or it would be bad for their stock.Hits : 153