The highly anticipated iPhone 7 has the potential of bringing the company out of the vortex of slumping sale
The Tokyo headquartered banking institution, Mizuho has reiterated a Buy rating for the most valuable company, Apple Inc. Moreover, the price target set on the company’s stock has reached at massive $120. The strength of the stock is due to the tech giant’s loyal user base.
Back in April when the tech titan launched the prestigious Apple Watch many analysts held high expectations regarding the future of the device. The analysts went bullish on the company except for Mizuho Securities who held a quite contradicting view when it declared that the high tech gadget would not entirely be successful and quite surprisingly the predictions of the company turned quite accurately into the reality. The Silicon Valley business has not yet unveiled the segregated sales figures of the device.
In the similar fashion, going against the expectations of the majority, the Mizuho Securities is now envisioning that the company’s upgraded and advanced iPhone 7 will not be able to impress the investors with bolstering sales figures. For the year 2016, the institution’s Japan based team has brought down its estimates of iPhone production to 206 million units from 224 million units. This reduction has been done on the premise of low iPhone 6S production in the first half of 2016 and lukewarm sales of iPhone 7.
The $561 billion company is heavily relying on its new iPhone 7 to circumvent the slumping growth it had encountered in smartphone shipments. The company is anticipating that the device will be able to bring about significant improvement over the iPhone 6 lineup in addition to making a substantial impact on the topline.
However, the company’s expectations didn’t quite lie in line with the firm’s analyst, Abhey Lamba who has been skeptical regarding the firmness of the iPhone 7 demand.
Apple is banking on iPhone 7 to counter slowing growth in smartphone shipments. The device is said to reflect significant improvement over the iPhone 6 lineup, and cast a material impact on the topline. While talking about the matter he expressed the following: “We think iPhone shipment numbers will continue to vary on a quarterly basis and iPhone 7 cycle will likely not be as big as iPhone 6 while it still remains to be seen if it can grow over iPhone 6s.”
The analyst further purported that even in the event of the dull iPhone 7 sales, the Cupertino, Calif. firm’s shares will be able to hit the $120-130 price level on the basis of adequate growth in user base and lifetime value (LTV). Moreover the analyst predicted that from late spring or early summer the supply chain data points will show improvement.
In the developed smartphone markets, the consumers await for the newer iPhone models to be embedded with greater creativity and innovation. This is the chief reason why the sales of iPhone 6s were below par. The iPhone 6S couldn’t offer such innovation which could have put it ahead of iPhone 6 and 6 Plus product cycle. However, the iPhone 7 is expected to have impressive features including, but not limited to, wireless charging and touchscreen, with built-in Touch ID. Moreover, the device has been speculated to have OLED display on a 5.8 inch screen.
In the current market where the demand of customized smartphones –like One Plus –is extremely high, the Apple has a lot of potential to introduce impressive features which can give more personalized experience to the consumers. Apple’s iPhone 7 may possess the potential of becoming the best-selling model too.