iPhone 5 demand questioned again
The results of a new survey indicate iPhone buyers are opting for the cheaper models, leaving the iPhone 5 out in the cold
Another investment company has given a fairly bleak analysis of Apple's iPhone 5 performance with UBS analyst Steve Milunovich cutting share estimates.
Citing the findings of a Consumer Intelligence Research Partners (CIRP) survey, Milunovich has penned a note to investors stating iPhone buyers are increasingly choosing either older model iPhone 4 and iPhone 4S handsets or 16GB iPhone 5's due to their lower prices.
In his estimates for 2013, the analyst pegged a price of $44.68 per share down from an earlier $47, while looking ahead to 2014 a prediction of $55.85 was dropped to $52.80. UBS cut its overall target price from $700 to $650.
According to the CIRP report consumer demand for higher-capacity iPhone models was low in October 2012 with the iPhone 4S but this has dropped further in 2013 with figures for the iPhone 5.
The 32GB and 64GB models are, allegedly, sitting on shelves and not contributing so much to Apple's profit margins. It's against this background that the rumours have emerged for a budget iPhone said to be released later in the year.
The economic climate appears to be making smartphone buyers a bit more frugal, which, combined with the wide variety of affordable low-priced Android devices is bad news for Apple's premium products.
However, there are others who claim Apple's iPhone business is doing just fine.
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