Displaying items by tag: iphones

(San Francisco)

Apple’s stock got hit in a big way last week as the company announced it would no longer announce unit sales of iPhones. The announcement was taken as a sign of weakening iPhone demand. An analyst summed it up this way, saying “Apple Reduces Disclosure; Typically Not a Good Sign”. The stock has fallen 10% since the announcement. The more positive view is that Apple wants investors to focus more on its earnings than on its unit sales, as earnings are ultimately what will drive the shares forward.

FINSUM: Apple’s shares often fall on earnings (8 out of the last 15 times), so the company has little to lose by eliminating unit sales. We think this is a smart move, especially as the iPhone transitions to being a highly saturated and mature product.

(San Francisco)

The tech industry seems to be at the very early stages of a crackdown by regulators. At this point the talk is mostly in media and amongst the public (a few Trump tweets aside), but the push is coming, both on the back of fake news and of anti-trust concerns. Well, there may be a much more immediate threat now. Apple may be facing a near-term regulatory crackdown as its own shareholders are calling for a study into the link between the iPhone and smartphone addiction, especially in children. Apple shareholders Jana Partners and Calstrs are calling for a study to see if the phones are addictive and what negative mental effects they may have on children. Some researchers believe the young have a serious metal health problem related to smartphones, with one academic saying “It’s not an exaggeration to describe iGen as being on the brink of the worst mental-health crisis in decades”.

FINSUM: So Jana and Calstrs, who are calling for this, say it is better to deal with the issue now rather than later and that doing so will provide value to shareholders. If regulations on smartphones actually come to pass, it could change the entire industry.