Analyst: Apple Needs More Rich People

Source: Apple.com

Has Apple (NASDAQ:AAPL) painted itself into a high-end smartphone market corner? In a new report titled “Are There Enough Wealthy People in the World to Sustain iPhone Unit Growth?” Bernstein analyst Toni Sacconaghi argues that Apple is running out of potential customers by limiting its smartphone product line to the high-end segment of the market, reports MarketWatch.

Sacconaghi predicts that Apple will fail to meet consensus forecasts for the next two fiscal years unless it finds 125 million new iPhone buyers in that time period. According to the analyst’s data, most the iPhone sales over the last three years have been from first-time iPhone buyers.

Since there are a limited number of first-time buyers that will purchase a high-end smartphone, Sacconaghi believes that Apple will soon be unable to sell enough iPhones to fulfill consensus expectations. Cook reiterated Apple’s commitment to making high-end devices when he recently told Bloomberg Businessweek that, “We’re not in the junk business.”