The Outlook for shares of Apple reducing the price by 20% because of the release of the iPhone 12

Due to the release of the iPhone 12, according to surveys, many users choose the iPhone 11 that has fallen in price to $ 600…

 

After the announcement of the iPhone 12, the Barclays Bank analytical group reported a decrease in the short-term profitability of Apple shares with a decrease in the average selling price of smartphones from the latest line. This information caused the target price of the company’s shares to be significantly lowered.

 

 

Despite all Apple’s attempts to reduce the cost of its new smartphones by actions such as removing the 12-wire EarPods and power supply from the iPhone package, analysts at Barclays Bank believe that this will not recoup the costs incurred by the company for providing devices with 5G equipment, installing the latest OLED screens and increasing the amount of memory in some models.

 

Thus, it is assumed that Apple will not receive a significant part of the planned profit, and the margin of the new product for the company, especially when taking into account the fall in prices for previous versions, is relatively small.

However, if you take into account the fact that Apple has the highest profitability in comparison with others in the General market, this decrease in margins can only concern investors who are used to stable high earnings on the company’s shares.

 

Barclays Bank analysts also believe that, in the current economic situation in the world, most potential buyers will tend to buy not the new iPhone 12 with a starting price from 1000 to $1300, and would prefer dramatically cheapened iPhone 11-th model, or, in extreme cases, can choose 12 mini iPhone for $700 and maybe a standard iPhone for $800, moreover, 5G network only starts to run and is available not everywhere in the world.

 

Despite the fairly optimistic first tests of the iPhone 12 in terms of performance and design, there is no obvious usual hype around the new Apple product yet – the conditions of the recently ended first wave of the coronavirus pandemic make it more rational to treat such purchases…