What's Behind the Slowdown in iPhone Sales?

The transcript discusses Verizon's outlook on the iPhone 7 and its potential to drive upgrades, despite current indifference and lack of subsidizing. It highlights the expected earnings decline and questions future revenue guidance. The slowdown in iPhone sales is attributed to factors like the previous surge with iPhone 6 and market saturation. The iPhone SE's impact on market expansion and profitability is considered, especially outside the US. Finally, the transcript touches on Apple's innovation potential, with a focus on new products and services like Apple Pay and the Apple Watch.

What is Verizon's current stance on the upcoming iPhone 7?

• They are highly optimistic about its success.

• They are indifferent and not heavily subsidizing.

• They are planning to heavily market it.

• They believe it will not affect upgrade rates.

What was one of the reasons for the slowdown in iPhone sales?

• A decrease in global smartphone demand.

• Increased competition from other brands.

• The introduction of a new operating system.

• A surge in demand for the iPhone 6.

How has the Chinese market influenced iPhone sales?

• Sales were pulled in from China, affecting growth.

• It has had no significant impact.

• It has led to a decrease in sales.

• It has consistently boosted sales.

What is a potential concern with the less expensive iPhone SE?

• It could negatively impact Apple's profit margins.

• It is only available in select markets.

• It is too similar to previous models.

• It may not appeal to high-end consumers.

What is a key factor in Apple's future innovation strategy?

• Reducing the number of product lines.

• Expanding into unrelated industries.

• Focusing solely on hardware improvements.

• Investing in new technologies with their cash reserves.