More Color On Yesterdays Jefferies Apple Note: iPhone Profits Peaked In 2012
Apple Inc. (NASDAQ:AAPL): Jefferies Equity Analyst Finds Smartphone Profitability To Have Reached A Peak
APRIL 3, 2013 by JEAN JADHON in TECHNOLOGY with 0 COMMENTS
The whole profitability of the smartphone market was at its zenith in the year 2012, as per Peter Misek.
Misek said that the market saturation and a dearth of differentiation among top-notch smartphones could direct downward pressure on costs for the upcoming Apple Inc.(NASDAQ:AAPL)’s iPhone.
The equity analyst of Jefferies said in a research note last night that the iPhone is presently available to nearly 2/3rds of mobile users across worldwide.
Misek believes that Apple will add China Mobile and NTT DoCoMo. This surely raises Apple’s served market to 76%. Interestingly, 88% of subscribers of China Mobile are still using 2G network.
Misek also indicated that Apple’s meticulously groomed image may have started aging now. He said that according to a Jeffries survey, the customer satisfaction rating of the company is the same as that of Samsung.
The much-talked-about inexpensive iPhone would have to be cheap enough to become a hit that Apple is hoping it to be. Misek feels that low-end competitors like Xiaomi, ZTE, Coolpad and Huawei will be cutthroat in India and China.
Misek said that on the whole, iPhone profitability will be down this year. This makes the previous year, 2012 to be the peak of Apple’s earnings from iPhone. A rebound is possible next year, however, Misek does not feel that the level will exceed that of 2012.
Misek also said that this would imply that international smartphone profits have possibly reached a saturation point.