iPhone Sales could drop by 36% in the Second Quarter of 2020

COVID-19 pandemic has become an unexpected nightmare for businesses around the world and Apple is no exception in this regard. A new report from Goldman Sachs expects iPhone sales to decline by 36% YoY in the second quarter of 2020.

Apple stopped the reporting of the number of iPhones sold a while back when the figure started declining. Instead, it only shares the revenue generated every quarter, which remains to be strong as these handheld devices now cost over $1000.

Anyway, the revenue data is enough for analysts to imagine the number of units sold. Seven analysts in a Bloomberg survey predict the Cupertino-based company to sell only 28 million iPhones in the on-going second quarter. While another group of three analysts suggests a 27% drop in the number of iPhones sold in the same period.

Additionally, the average selling price of the iPhones will continue to be Appleā€™s weakness. The sales figure will recover only by the last quarter of the year with a 2% drop compared to last- year at the same time. Sadly, this will affect Apple when the company is expected to debut its first 5G capable iPhones.

Amidst this, Apple announced its first-ever sub $500 iPhone in years in the form of iPhone SE 2020. The phone starts at $399 for the base 64GB version and goes up to $549 for the top variant with 256GB storage. Whereas, the mid-tier 128GB model costs $449.

The new launch has resulted in the company discontinuing the iPhone 8 in the US. Apple currently only sells iPhone 8 Plus (select retailers), iPhone XR, iPhone 11, iPhone 11 Pro, iPhone 11 Pro Max and iPhone SE 2020 in its home market.