Hedge fund manager Dan Niles:
iPhone sales are collapsing right now… You can’t sell a $1,000 phone to China where the average GDP per person is $10,000, or to India where it’s $2,000.
Fair enough, but it looks as if Samsung has a similar problem in China’s turbulent economy. What about Apple’s fast growing Services business?
The iPhone is what drives the services business with a lag. So, if you’re not selling as many phones, well, how are you going to sell AppleCare? How are you going to sell Apple Music? That’s the issue with Apple. They’re going to continue to lose market share, which ultimately will hit their services business.
Oh, we’re back to marketshare as the primary metric; instead of the important ones like revenue, profits, gross margins, et al. With no evidence or data to back up the assertion that iPhone sales are collapsing, what is Niles’ game?
He’s shorting APPL.