Are people wasting their money on Apple Inc.’s new iPhone 7? A report by equity analyst UBS suggests that this is true. Evidently, an overwhelming number of people surveyed around the world hold low opinions about the iPhone. UBS’s report shows a mere 20 percent of 6,500 people surveyed believe the iPhone is worth the price it goes for.
Apple iPhones lose favor
UBS’s surveys spans across people from the U.S., the U.K., China, Germany and. Japan. The results put Apple’s flagship device behind most of its handset rivals including Samsung and LG. It even ranks behind brands you probably never heard of like ZTE and Meizu. Less than half the sample, 48 percent, believes the company makes premium-quality devices while 33 percent say Apple gadgets are unique.
This latest report highlights a declining trend for Apple, reports Steven Milunivich — analyst at UBS. Milunivich says the iPhone maker’s placing has been dropping across the board. This means that competitors are quickly catching to Apple and that the tech is failing to make its products distinct from others on the market.
“It’s a little off-putting that Apple is way at the bottom for ‘offers value for money’,” Milunivich admitted at a meeting about the results.
The tide is shifting for Apple as more people fail to recognize the brand it as a valuable purchase. This is evident in the lessen sales seen over the last three financial quarters. The company is finding it difficult to surpass the success if its 6th generation iPhones. Also fighting against the tech firm’s gains is the rise of cheaper devices that offer similar specs to the iPhone.
iPhone offers no value for money
The novelty of owning an iPhone is fading quickly in the People’s Republic of China. Tech consumers in the region are treading to towards price-conscious purchases. Handset makers like the countries Huawei and Oppo are eating away at iPhone sales in the region as well as other developing nations. These companies produce handsets that hold many of the specs that are favored on the latest Apple Inc. smartphones. However, they cost significantly less than your iPhone 7.
“It’s a function of cheaper phones becoming good enough.” That comment was made by Abhey Lamba of Mizhuo Securities “Apple has done well at the upper end,” she says, “but there’s not much more growth at the upper end of the market.” . Her sentiments are matched by many others, who believe the iPhone will continue to slip in China and the rest of Asia. In China Apple pushed sales 15 percent lower over the course of the 2016 financial. Researchers predict the trend will keep up for the forseeable future.
Despite this, UBS still rates Apple stock as a buy with a $127 price target. The analyst firm also believes that the reveal of newer innovative gadgets by Apple could see it rake in the favor of buyers and investors.
Stifel analysts are a lot less bullish about Apple Inc. , but hold the same sentments as UBS. Stifel recently dropped its Apple ranking, pulling the stock from a “buy” to a “hold” rating. This happen in the wake of Apple latest earnings reoprt. Stifel believes the iPhone maker will be held between $105 to $120 until it offers on more details on upcoming releases that will grow the company.