Analysts say iPhone sales could shrink by 17% if Apple doesn't make a drastic change to its
0Analysts say iPhone sales could shrink by 17% if Apple doesn't make a drastic change to its business (AAPL).
The fact that more people are hanging onto older iPhones for longer is good news for customers' wallets, but bad news for Apple's future stock price.
One of the most respected Apple analysts out there, Bernstein's Toni Sacconaghi, has said that the iPhone is at risk of turning into the iPad, and that Apple needs to move fast to head off that problem.
The iPad has experienced major shrinkage this year partly because people are hanging onto the devices they bought for longer. Even in the third quarter, when Apple finally saw a boost in iPad sales numbers, revenue from tablets was only up 2% because people were buying the cheaper versions.