According to Appleinsider, Robert Cihra, an analyst at the US financial services company Guggenheim, said that Apple may make major changes to the naming method of the iPhone, which has been iterating for several generations, this year and simplify the name of the 2018 iPhone. Apple's move to numerically name its new models last year compared with previous iPhone iterations prompted Apple to skip "iPhone 7S" and go straight to iPhone 8, while introducing the iPhone X, which could lead to a simplification of the popular smartphone's naming scheme, Sihra wrote in an investor note. "We think Apple may use this upcoming cycle to formally change its iPhone naming pattern," Sihra said. "The mid-range LCD iPhone may be simply called iPhone without any number. The high-end iPhone will obviously retain the X suffix to indicate its increased specifications." Changing the naming of successive product releases is not a new idea, as demonstrated by the iPad, which went from iPad 2 to New iPad, the fifth-generation iPad to iPad Air, and finally back to simply iPad. Simplifying the name to iPhone and retaining the X designation could also confuse consumers, as it would be difficult to describe a specific model without some kind of defining terminology. In 2017, Apple lacked a "large-size" iPhone X due to limited supply of OLED panels. The company believes that the 6.5-inch model can make up for this "notable omission" in the upcoming update. In addition, the model with an LCD screen will also receive a "significant upgrade" and will be equipped with the 3D sensing function of the iPhone X, as well as more optimization features in machine learning and augmented reality. Current rumors and speculation point to three iPhones arriving this fall, including a low-spec 6.1-inch LCD iPhone, and 5.8-inch and 6.5-inch OLED iPhones. For the current iPhone, Guggenheim cut its annual unit growth forecast to flat from 3% a year ago, citing "weaker-than-expected iPhone X growth" and weak demand in China's smartphone market. "It appears that Apple will ultimately fail to outperform in the no-growth smartphone market," Sihra wrote. But Sihra expects iPhone average selling prices (ASPs) to increase 15% year-over-year, which will help continue to drive iPhone revenue growth of 14% year-over-year. Until Apple releases its second-quarter earnings, Apple's results are not expected to change much, including revenue growth of 15% year-over-year to $60.9 billion and earnings per share of $2.69, up 28% from the previous year. However, Sihra cut his forecast for the June quarter, expecting revenue to fall from $52.7 billion to $49.4 billion and earnings per share to fall from $2.15 to $1.93. iPhone shipments in the quarter are also expected to fall from the previous expectation of 42.7 million units to 39.4 million units. Guggenheim continues to maintain its "buy" rating on Apple shares, with an unchanged 12-month price target of $215. |
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