Apple is preparing an iPhone 16 launch later this year, where the company is expected to launch four new models that will be presented as direct successors to the iPhone 15 series. However, in a new research note, Barclays analysts believe that the new models will not have anything exceptional to offer, hinting that Apple might experience a sales slowdown in 2024.
New research note also states that Apple’s Services division will not see a growth reduction in 2024
The price tag for Apple stock has reduced from $161 to $160, which is not a major difference detailed in Barclays’ new research note, but additional information reported by 9to5Mac reveals that the company may not have an incredible 2024. Its primary revenue generator, the iPhone, is said to experience a sales slump, with the iPhone 16 not offering any compelling upgrades to warrant an upgrade. Barclays has not mentioned what changes will arrive to this lineup, so we are unsure why the analysts would make such remarks.
Later this year, Apple is rumored to treat both the iPhone 16 Pro and iPhone 16 Pro Max with a tetraprism telephoto camera, and there is a possibility that the top-end flagship gets an exclusive ‘super telephoto’ unit to help differentiate itself from the rest of the lineup. We are confident that we will learn about more exclusive upgrades in the coming weeks, making the newer models appear as a ‘must buy.’ Barclays also says that Apple’s Services division will decelerate in growth, increasing just 10 percent in fiscal 2024 and 8 percent in fiscal 2025, making it well below the previous growth estimate of 20 percent.
Throughout Apple’s 2023 earnings call, only its Services division has witnessed a revenue increase compared to the previous quarters, as hardware sales continue to plummet. This category has also been valued between $1.5 and $1.6 trillion by the end of 2024 by Wedbush analysts, assuming Apple maintains this trajectory. Surprisingly, these Barclays analysts have not talked about the Apple Vision Pro, which is puzzling because industry watchers consider it the technology giant’s most ambitious product to date.
Instead, they seem to downplay the iPhone 16 series, especially when it is the start of the year, where unconfirmed rumors make up the bulk of the news, so we recommend patiently waiting for more updates regarding this year’s flagship lineup instead of jumping to conclusions.