Apple Inc (AAPL) is down 0.75% at recent check and it seems that it’s falling on reports the US-based technology giant may extend iPhone’s product cycle.
That news comes from Nikkei, which writes that Apple is considering extending the iPhone refresh cycle to once every 3 years, a year longer than the current cycle. The publication notes that the changes on the iPhone model to be launched this autumn will be minor. Apparently this is due to a slowing market and smartphone functions having little room left for major enhancements.
It has been argued that Apple may be reaching peak iPhone sales, which is limiting new sales. Cupertino sold some 230 million handsets in 2015. According to Apple’s production schedules provided to suppliers, the company is not expecting to sell more iPhones than last year. In fact, reliable Apple analyst Ming-Chi Kuo expects iPhone sales to slide to 190 million units in fiscal 2016, which is 3 million less than what the company shipped in 2014. The iPhone accounts for nearly two-thirds of Apple’s revenue.
Apple Inc. recently traded at $100.34. The name has a current market capitalization of $549.61 billion.
As for passive income investors, the company pays shareholders $2.28 per share annually in dividends, yielding 2.27%.