A number of Wall Street analysts are predicting a flat year for Apple in 2016. Apple is currently the world’s biggest tech company. However, in the past six months, more than $220 billion has been slashed from the company’s value, as its share price has plummeted. Next year, the company is planning to refine its existing products rather than launching new ones.
2015 was a year of big Apple releases, including the launch of the Apple Watch. Released in April, the Apple Watch was the first truly new Apple product since the 2010 launch of the iPad. The Apple Watch has been a success for Apple, with the company shipping an estimated 21.3 million smartwatches by the end of this year. An analysis of Apple figures suggests the Apple watch added $1.7 billion to Apple’s earnings in just six months. Apple also released a revamped Apple TV this year and launched Apple Music, which is predicted to grow to 20 million subscribers by the end of next year.
One of the biggest problems facing Apple next year is the saturation of the smartphone market. A Morgan Stanley analyst recently predicted that iPhone sales would shrink for the first time in 2016. The iPhone 6S and 6S Plus sold 13 million in their opening weekend, compared with 10 million sales for the iPhone 6 and 6 Plus when they were released the previous year. Analysts expect 2016’s sales figures to be closer to 2014’s.
Analysts are also pessimistic about sales growth for the iPad. The tablet market has been a struggle for all companies, as people fail to see compelling reasons to upgrade from their current devices. If iPad sales continue to decline, it could weigh heavily on Apple’s bottom line next year.
Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.