NEW YORK -- Consumer interest in the iPhone 11 will likely be limited because the handset is not compatible with 5G networks, U.S. investment bank Piper Jaffray said in a Monday report.
In a survey of 1,500 iPhone users in the U.S., 51% said they will purchase one of three new smartphones released by Apple this fall -- the iPhone 11, iPhone 11 Pro or iPhone 11 Pro Max. This was significantly lower than the 69% who were interested in the latest iPhones in a similar survey last fall.
Instead, more customers are looking to buy older models that now carry a lower price tag. A total of 49% of respondents this year were considering this option, up from 31% last fall.
Apple's iPhone revenue for the fiscal year ending September 2020 will fall 1%, in line with market expectations, analysts wrote in the report. They predicted that Apple's new streaming service to launch in November and the Apple Watch will shore up the company's overall earnings.