iPhone maker Apple (NASDAQ:AAPL) is receiving several complaints of overheating issues with its recently launched iPhone 15 Pro models. In some cases, the temperature rises so high that it becomes difficult to even hold the phone, and users are considering returning the phone. Earlier, iPhone 14 Pro users complained about similar overheating issues. Given that Apple earns substantial revenue from these high-priced phones, this issue with the Pro series might seriously jeopardize its sales.
Users of Apple’s Pro series from the U.S., China, and Canada have complained about similar issues on social media platforms. These phones are said to reach high temperatures mostly when being charged and using intensive applications, a Wall Street Journal report stated. The tech giant must certainly resolve the issue as soon as possible if it wants to minimize any impact on its sales.
Here’s Why Apple’s Sales Could Take a Hit
The global demand for smartphones has been on a steady decline. As per Counterpoint Research data cited in the report, global smartphone shipments are expected to fall by 6% annually to 1.15 billion phones by the end of 2023. Nearly 50% of Apple’s revenues are driven by smartphone sales. Meanwhile, the lead times for delivery of the latest iPhones continue to be a problem for Apple.
The Pro versions of iPhones contribute a significant boost to Apple’s sales, even though volumes/units sold are low. Should the overheating problem continue, it could hamper Pro smartphone sales and ultimately Apple’s performance. The company has solved earlier issues with iPhones with software updates.
Titanium is the Probable Culprit
A few researchers and iPhone enthusiasts who are trying to figure out the issue have said that the titanium material used in iPhones is causing the overheating. Titanium, which is used in the Pro models, is a poor conductor of heat.
Apple also uses titanium in the frames and cases, which adds to the heating problem. Some reports suggest that Apple is considering using different materials in future iPhone models to skirt the heating issue. Apple needs to come up with a solution to create a balance between weight and heat dissipation.
Is Apple Stock Good to Buy Now?
The launch of the iPhone 15 series surely makes Apple stock a hit. However, some uncertainty remains about the ban on iPhones in China’s government offices. Also, Apple is yet to comply with the new Chinese requirements for app stores, which are aimed at expanding regulatory oversight over app stores and apps.
Owing to these challenges, Wall Street remains cautiously optimistic about Apple’s stock trajectory. Of the 21 Top Analysts who recently rated AAPL, 14 have given it a Buy while seven have given it a Hold rating. Top Wall Street analysts are those awarded higher stars by the TipRanks Star Ranking System. This is based on an analyst’s success rate, average return per rating, and statistical significance (number of ratings).
Based on these top analysts’ views, Apple has a Moderate Buy consensus rating. Also, the average Apple price target of $208.50 implies 22.3% upside potential from current levels. Meanwhile, AAPL stock has gained 36.9% so far this year.
