iPhone sales see significant drop; Apple accused of covering up the information

Apple is not the same company that once led the smartphone world by the might of its ideas as in the last few years it has failed to keep up with the technology trends leaving a spot open for the Chinese smartphone companies especially Huawei, the mistake that is threatening the US-based tech giant’s position in the handset industry.

According to the financial results posted by Apple at the end of January 2019,  iPhone sales plummeted 15% between October and December despite having a higher average selling price.

Now just before the end of the second fiscal quarter, analysts predict that this trend will continue down the line with the iPhone sales amounting to 45 million which is 10% less than the 52 million amount the company witnessed at the same time last year.

The new investor note by OTR Global states that Apple shipped between 37 million and 42 million iPhones, while the analysts at the Wall Street analysts expect the number to be between 40 to 45 million phones.

OTR said the main reason for this trend is the weak demand for the XR and XS models

Last year, Apple announced its decision to stop announcing the number of sold devices so there is no way to confirm these figures yet, but the story does not just end here.

Apple is now also facing a class action lawsuit where it is being accused of securities fraud for making false statements and failing to disclose adverse information regarding its business prospects leading to an alleged artificial inflated stock price.

The lawsuit also claims that Apple was not initially forthcoming about the drop in demand due to poor iPhone sales in China and the 2018 battery replacement program, both of which contributed towards the less than expected sales figure in the first fiscal quarter of 2019.

Furthermore, the company is also accused of deliberately hiding the fact that production orders from suppliers had been slashed and prices had been cut causing the stock price to reach $209 per share.

Apple fell from second to the third spot in IDC ranking in the second and third quarter of 2018. Even though it reclaimed its place in the fourth quarter, it suffered from an 11.5% dive in the smartphone shipments as compared to the fourth quarter of 2017.

Gartner notes that Apple is losing ground, especially in emerging markets because the Chinese counterparts are working towards offering the same or better features while controlling the price. If these accusations are true, then the company has a long road for soul searching ahead in the future.

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