In the fast-moving tech world, your reputation is only as good as your latest device, even if you are as iconic as Apple . That fact may be leading the company to redesign the fiscal 2018 iteration of its iconic iPhone, according to the Nikkei Asian Review .
Famous Taiwanese iPhone parts supplier Foxconn Technology is developing a glass casing for the new iPhone 8 as part of Apple’s revamp effort, according to Nikkei sources. Foxconn has been developing the glass casing technology for over a year, but it remains to be seen whether the company will become a glass-casing supplier for Apple.
“We are bullish on [the full-year 2018] iPhone cycle due to potentially substantial changes, with new aesthetics and features that enable a better mobile VR [virtual reality] experience,” Uerkwitz wrote. “Our estimated FY18 iPhone shipment of 245 million units is 3% higher than consensus of 239 million. Longer term, we expect wider swings in Apple’s iPhone outlook, and we believe challenges abound for Apple, as the smartphone shipment driver shifts from market growth to changes in market share.”
Uerkwitz sees the decline in sales as resulting from the global lengthening of the smartphone replacement cycle — a fact of life from which Apple is not immune.
“As long as iPhone sales do not grow, we believe the stock will not work. Longer term, we see tremendous value in the Apple ecosystem, and its ability to monetize its user base. Apple’s substantial capital-return program should provide downside protection, making this a Perform-rated stock,” Uerkwitz wrote.
This is a sentiment that Action Alerts PLUS has been preaching for months, as slowing iPhone growth has put negative pressure on the company’s stock.
“We remain in Apple for the long term, and view the iPhone 7 as a catalyst, with the iPhone 8 providing another level of boost,” AAP co-managers Jim Cramer and Jack Mohr wrote in a recent note . “We remain excited about the Services business, and believe that its long-term value is under-appreciated by the market. We reiterate our long-term $130 price target, but we recognize the near-term pressures that will weigh on the stock for the time being.”