Apple has the number one all time selling tablet, and has since 2010. The company boasted record revenue for almost all of its devices on its most recent quarterly earnings call. But, for some reason, the stock market seems to think the most prolific tech company in America is “collapsing.” Today, Citigroup analysts sent a note to investors that make it seem like Apple is rotting from the inside out.
BusinessInsider is quoting Citigroup investors as saying that the iPhone and iPad have “softened.” The previous estimate for sales this quarter was 35 million iPhones, but that estimate has been cut to 34 million. Citigroup also predicts that Apple will only sell 25 million iPhones in June, a 7 million unit drop from general analyst prediction of 32 million.
Citigroup claims that the 10-inch tablet market has matured and that the full-sized iPad is on its way downward. Although the iPad mini was so successful that Apple literally couldn’t keep up with demand, the investment group says that sales of the smaller screened tablet are expected to flatten. Estimates for iPad mini sales have been cut from 19 million to 18 million.
The analysis team also noted that there is no solid evidence of the purported low-cost iPhone that has been talked about in tech circles.
Based on Citigroup’s dismal forecast, you would think that Apple has reached the height of its popularity. What the investment company doesn’t take into account is the fact that Apple is also the most innovative company in America and new products that will wow the world are surely in the works at this moment. It is merely a matter of when will they make it to our grubby little hands.