Apple iPhone 8 launch is still sometime away, but analysts are not entirely convinced it will help the Cupertino-based tech giant to bounce back. Barclays’ analyst Mark Moskowitz in a note to investors has suggested the iPhone 8 will not be making the kind of impact that is expected and will lack a ‘must-have’ appeal for consumers. His note says the iPhone 8 will come along with the iPhone 7s, iPhone 7s Plus. The latter will feature only minor upgrades.
According to Fortune, Moskowitz explained in a research note on Tuesday that he has downgraded Apple’s stock price target as he believes the iPhone 8 will be unable to overcome the existing challenges for the company. Moskovitz has also mentioned the current trend of customers opting for older iPhone units like 6s instead of the newly launched iPhone 7, calling its the ‘mixing down’ phenomenon. Apple is speculated to launch three versions of the iPhone in September.
Apple iPhone 8 is expected to come with a curved bezel-less display, and a glass body design similar to the iPhone 4s. Other rumours suggest the iPhone 8 will have a 5.8-inch OLED display with the Touch ID being integrated under the glass. Some have also speculated the iPhone 8 will come with facial recognition capabilities.
“Maturation of the device-centric consumer electronics adoption wave could weigh on both Apple and the smartphone market,” Moskowitz told investors. He also expressed concerns over the shrinking of the Chinese smartphone market, which was a major growth engine for Apple in the past, but has seen a drop in the last couple of quarters.
On the other hand, Katy Hubert, an analyst at Morgan Stanley had said earlier this month that Apple’s iPhone 7 sales have been muted in anticipation of the iPhone 8, and will continue to see a decline in revenue – only to go back up in 2018. The failure of Apple to incorporate significant upgrades in the iPhone 7 has had customers waiting on the iPhone 8 in order to upgrade, according to Hubert. She believes the radical changes expected with the iPhone 8 will drive up Apple’s revenues in 2018.
However, Mokowitz believes Apple’s business services (including Apple Music) and investments in India will drive future opportunities. “He added that Apple’s growth could also come from appealing more to corporate customers and artificial intelligence,” in his note.
For Apple, the iPhone 8 will be a crucial device, and the tenth anniversary iPhone. The company is expected to introduce new features like wireless charging, a better display, get rid of the Home Button, according to some of the leaks. Whether it will be good enough to convince people to upgrade, we’ll have to wait and see.
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