Predictions call for high iPhone prices outside the US

The recent AAPL results mark a good reference that seems to maintain acceptable numbers and keeping critics and analysts on the sidelines. However, at this rate, high iPhone prices are expected outside of the United States. At the moment the predictions show only an increase in this line, but nothing rules out that all Apple products suffer this increase. It should be noted that this could happen to a greater extent for the iPhone 14.

The second quarter arrived and the company has already released the reports. Earnings reached one of their highest peaks, being a record, however this will not prevent this quarter from falling quite a bit. Apple’s revenue could be severely affected, with losses of between 4 to 8 billion dollars caused by multiple factors.

Context

The company has maintained certain records throughout this quarter, showing multiple profits and benefits in the first quarter alone, being the second fiscal. This benefit amounts to 97,300 billion dollars, which represents a notable increase of 9% compared to last year. Apple then made a profit of about $25 trillion, which represents an earnings per share of about $1.52.

Despite the company’s notable earnings and breakthrough, it hasn’t prevented the current quarter’s forecast from going down, complicating multiple prices. Faced with this forecast, the CEO of Apple, Tim Cook notified a day ago that the drop in profits will be due to the shortage of parts, leading to the loss of between 4 and 8 billion dollars this quarter alone. The shortage continues to strongly affect companies, especially in some specific components.

The hit in earnings for the third quarter will be due specifically to five essential reasons, according to CEO Tim Cook:

• The already mentioned shortage of parts that continues to affect the company.
• The closure of multiple shipments and production in China due to the health situation of COVID-19.
• The exchange rate that has been devalued.
• The current situation in Russia that also affects the company in a certain way, since the boycott significantly reduced sales.
• Inflation means that multiple customers cannot currently have a device from the brand, as costs are increasing.

Optimism from analysts

The fountain, PED30 took on the task of gathering the comments of 13 analysts, concluding that Apple’s profits and records cannot go wrong in the third quarter. In another instance, Piper Sandler in her article also states the general opinion of the analysts who reviewed this case.

Piper speaks for multiple analysts. In the first place, she raises the situation in June of last year, when Apple began to make its affectation notorious. Firstly due to the Russian blockade, as well as the impact of devaluations and currency issues. In addition to this situation, the company also faced the loss of between 4 and 8 billion dollars due to the health status of China due to COVID-19, as well as the shortage of components.

High iPhone prices are likely

On the other hand, Analysts refer to Apple’s situation to warn of rising prices for iPhone outside the United States, especially after the release of the iPhone 14. Analyst Chris Caso maintains his position that the aforementioned problems will cause product prices to rise. The economic situation of the world, see currencies and inflation increase prices in the entire Apple line outside the US, The problem became noticeable after the departure of the iPhone 14.

The fear that the company will raise its prices is worrying. Due to the situation in Russia and the global currency economy, it is expected or at least in forecasts that after the release of new products this year they will harm multiple countries with high prices. The analyst mentions that this increase in prices from places outside the US are negatively affected in the requests for units.

So, the negative hit on Apple’s profits is expected, at least for the third quarter, around the fall could be the reasons for the impact.