With slump in iPhone sales, are we post Peak Smartphone?


  • TECH
  • Monday, 07 Jan 2019

Customers visit an Apple store in Beijing, China, Thursday, Jan. 3, 2019. Apple Inc.’s $1,000 iPhone is a tough sell to Chinese consumers who are jittery over an economic slump and a trade war with Washington. The tech giant became the latest global company to collide with Chinese consumer anxiety when CEO Tim Cook said iPhone demand is waning, due mostly to China. Weak consumer demand in the world’s second-largest economy is a blow to industries from autos to designer clothing that are counting on China to drive revenue growth. (AP Photo/Ng Han Guan)

NEW YORK: Behind Apple’s disconcerting news of weak iPhone sales lies a more sobering truth: The tech industry has hit Peak Smartphone, a tipping point when everyone who can afford one already owns one and no breakthroughs are compelling them to upgrade as frequently as they once did.

Some manufacturers have boosted prices to keep up profit. But Apple’s shortfall highlights the limits of that strategy. The company said demand for iPhones is waning and revenue for the last quarter of 2018 will fall well below projections, a decrease traced mainly to China.

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