iPhone ‘Super Cycle’ Pronounced Dead

Apple looks to make money from 1.3 billion existing devices
IPhone shipments rose 0.2% in 2017, according to IDC

Dan Morgan, senior portfolio manager at Synovus Trust, discusses Apple’s earnings and outlook.(Source: Bloomberg)

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By Alistair Barr

February 2, 2018 at 5:48 PM UTC

Updated on

February 2, 2018 at 7:44 PM UTC

This article is for subscribers only.

The iPhone “super cycle” -- a wave of upgrades and new customers that was supposed to wash over Apple Inc. this year with the introduction of its model X -- was pronounced dead on arrival.

In Apple’s first earnings report since the launch of the pricey flagship smartphone, the company reported lower-than-expected handset sales from the holiday period. Chief Financial Officer Luca Maestri also forecast a decline in the average selling price of iPhones in the current quarter, suggesting the most-expensive models aren’t as popular.