'The iPhone 14 model received mixed reactions when it was first released.'
Ahead of the release of the corporate report for the 4th quarter of the fiscal year 2022 (Q42022) iPhone maker Apple Inc is expected to record an increase in sales but does not deny the weakness in global demand.
According to Refinitiv, Apple is expected to record an 11% increase in sales following the introduction of the iPhone 14 with unchanged price offers for high-spec variants including several other products.
However, Synovus Trust analyst Dan Morgan predicts the company's growth will slow to 2% in the next quarter due to reduced demand for low-variety models in China.
According to him, the weakness in the spending environment in the world's 2nd largest economy will change the company's earnings trajectory in the next quarter in addition to the still high global inflation factor.
It is generally known that the United States (US) technology giant's corporate earnings report recorded a decline with Alphabet Inc failing to maintain its performance due to the strengthening of the dollar.
Based on those factors, analysts feel that Apple plans to maintain the price of their Pro model to re-strengthen demand to allow consumers to buy despite inflation.
The decision is also seen as Apple's best plan since the next quarter, known as the holiday quarter, is capable of bringing 30% of annual revenue to the company.
As of this writing, Apple shares are trading down 1.96% at $149.35 with a market capitalization of $2.40 trillion.
