Demand for the new iPhones is failing to reach the company’s expectations due to worsening economic conditions in China and on factors like the $29 iPhone battery replacement program the company offered to consumers a year ago, Apple said on Wednesday.
The weaker holiday season — a critical period in which most of Apple’s iPhones are sold — will fan growing belief the company is struggling with fatigue for its popular smartphone and sales may be on a downward slide. The company raised a red flag in November when it said it would stop disclosing how many units it sells each quarter.
“iPhone units are likely down and I believe prices on the more premium, higher priced phones are down due to holiday discounting,”
said an analyst at Moor Insights. The warning is similar in vibe to concerns Apple endured more than a decade ago, when it missed its fiscal fourth-quarter numbers amid an economic downturn.