According to the analyst expectations, Apple Inc. (NASDAQ:AAPL)’s iPhone 6 might face supply shortage in 2015 amid shifting production practices towards more profitable iPhone 6 Plus. At the same time, the iPhone maker has improved its market share in major markets across the globe.
A recent study from UBS analyst, Steven Milunovich, expects the shortage of iPhone 6 to rise further in 2015 primarily because of the higher demand of iPhone 6 Plus. He added,
“Given the ramp in [December] we do expect a sequential decline of 40% or so in March, mostly in the smaller iPhone 6. We think interest in the larger 6 Plus may be greater than Apple expected, necessitating a mix shift.”
In addition to UBS, Barclays has predicted somewhat similar trend citing the increasing demand of iPhone 6 Plus in the Chinese market. Ben Reitzes, analyst at Barclays, said, “We believe strong iPhone 6+ shipments in a seasonally weak March quarter could yield significant margin upside.” The Chinese New Year in February is likely to push the demands much further.
Apple Inc. (NASDAQ:AAPL) adjusted its production ratio for the two iPhone devices, iPhone 6 and 6 Plus, in October itself because of the higher demand of iPhone 6 Plus model.
The recent iPhone models have helped the company boost its market share in primary markets including the United States, Great Britain, Japan, and even Germany. iPhone maker had a market share of 32.6% in September against the heightened share of 41.5% in October in the American market. At the same time, its market share increased from 17% to 48% in Japan in October 2014 and the market share of Apple reached 39.5% in Great Britain against 31%. The only market where the company lost its market share was Europe.
This article has been written by Prakash Pandey.