New York Post

B’klyn suit vs. other big Apple

Apple cuts sales estimate for new iPhone: report

- Priscilla DeGregory

Downtown Brooklyn just got its first Apple store — and now has its first classactio­n suit against the tech giant for slowing down performanc­e on older iPhones.

Five lead plaintiffs in Brooklyn, New Jersey and Florida claim in the new suit that Apple hid the fact that certain iPhones exhibited lower performanc­e over time.

And if those customers went to an Apple Store to inquire about their sluggish phones, they were encouraged to buy a new one rather than replace the battery, according to the suit filed in Brooklyn federal court on Tuesday.

The lawsuit was brought against the company “for its failure to disclose that Apple has been purposely slowing down the processors of its iPhone 5, iPhone 6 and certain iPhone 7 models through operating-system software updates.”

Plaintiffs’ attorney Melissa Emert said users were fed up with Apple barring them from replacing their batteries and instead urging them to upgrade to new phones.

Last week, Apple admitted that it deliberate­ly slowed down older phones’ performanc­e in order to preserve battery life. The company did not return a request for comment.

So much for iPhone Xstasy.

Shares of Apple and its Asian suppliers fell Tuesday following reports that sales of the company’s newest smartphone could miss expectatio­ns in the first quarter.

Apple is slashing its sales forecast for the iPhone X from 50 million units to 30 million units for the quarter, according to a report in Taiwan’s Economic Daily that cited unidentifi­ed sources.

Apple has not publicly disclosed quarterly sales targets for the iPhone X, which went on sale in November.

The X model, which Apple dubbed “the future of the smartphone,” created a buzz when its all-glass display and Face ID functional­ity were unveiled, but critics were quick to seize on its eye-popping $999 price tag.

Combined with Apple releasing the iPhone 8 and 8 Plus with nearly identical internals, the X has not been a must-have device like previous iPhone models were.

Some analysts also have flagged disappoint­ing demand. JL Warren Capital is predicting shipments of just 25 million units as consumers balk at the “high price point and a lack of interestin­g innovation­s.”

Daniel Ives, head of technology at research firm GBH Insights, told The Post he believes Apple’s iPhone woes are the result of better-thanexpect­ed early sales.

“We believe the success in December hurt (the) March (quarter) a bit as the supply chain (issue) corrected itself earlier than expected,” Ives said.

Ives described the report as a “stomach punch” for Apple and said that the March and June quarters will be makeor-break for the Cupertino, Calif., company. However, he added that GBH Insights still believes the current line of iPhones is on track to be a “supercycle” with 240 million or more units sold in 2018.

An Apple spokeswoma­n said the company does not comment on market rumors. During a trip to China this month, Apple CEO Tim Cook said he “couldn’t be happier” with the demand for the iPhone X in the country .

The sales news comes after a rocky week for Apple, which saw the company finally admit to slowing down older iPhone models in order to preserve their batteries, provoking a string of classactio­n lawsuits.

Last week, Barrons published a feature in which it predicted the tech giant would become the world’s first trillion-dollar company in 2018.

Apple shares — up 50 percent this year, giving the company a market cap of nearly $900 billion — fell 2.5 percent Tuesday, to $170.57.

 ??  ?? Apple will be hard-pressed to ring in a prosperous new year if the company misses its 50 million unitsales forecast and has to settle for this low-ball level in the first quarter: X iPhone 30M
Apple will be hard-pressed to ring in a prosperous new year if the company misses its 50 million unitsales forecast and has to settle for this low-ball level in the first quarter: X iPhone 30M

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