Apple is the new Nokia – Analyst

Apple’s new iPhone sales have been lower than expected, with CEO Tim Cook blaming the trade war between the USA and China.

Analyst Rob Hall said that Apple risks following the route of Nokia, however, as its customers refuse to fork out for newer, expensive devices.

“Nokia saw rapid expansion of replacement rates in late 2007 that was well beyond what any linear forecast would have implied,” said Hall.

Hall added that he doesn’t see strong evidence of a consumer slowdown in 2019, but is still warning investors that Apple’s replacement rates are likely to become more sensitive as the company approaches its maximum market penetration – just as was the case with Nokia.

Struggles in China

Hall also expects Apple stocks to plummet to $140 – $42 lower than his original prediction – due in part to issues around China.

“We have been flagging China demand issues since late September and Apple’s guidance cut confirms our view,” said Hall.

“We do not expect the situation to get better in March and would remain cautious on the region.”

Apple’s new iPhones have struggled to sell in China due to a variety of cheaper options, including Huawei and Vivo phones.

Huawei’s flagship phones cost half the price of an iPhone Xs Max in China, while Vivo’s entry-level devices cost a quarter of the price.

Now read: Apple priced itself out of shrinking Chinese smartphone market

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Apple is the new Nokia – Analyst