iPhone Sales Slowed, Now What?

Over the past 24 hours,

's

share price has fallen more than 6 percent as investors digested the company's lackluster fourth quarter results. While the company's cash coffer remains impressive, iPhone sales grew very little, sparking a hot debate as to whether or not Apple has come to the end of a period of high growth. The results, though widely expected, gave investors pause and many dumped their Apple holdings. Now, with share prices on the decline, traders are wondering what the tech giant is planning in the coming year.

Following Apple's earnings report, traders began to

just how the company should proceed. Dwindling iPhone shares are, in some ways, to be expected— the market for the devices has become saturated and model updates are offering fewer and fewer new features to entice consumers to upgrade each year. However, some say that in order to counter slowing sales, Apple may have to drop its prices. The company has always sold its products for a premium, relying on branding and advertising to position itself as being worth the extra cost, but now many believe the firm will have to give up some of those margins in order to reignite growth.

Many are attributing the iPhone's disappointing sales to the shifting landscape of mobile devices. Initially, wireless carriers offered their customers hefty subsidies on particular phones in an effort to get them to sign up or continue with service. For that reason, people were less concerned with the iPhone's significant price premium. However, many carriers have begun to move away from that model, opting instead to allow customers to buy their phones outright. If that trend continues, it is likely to weigh on Apple sales as many people may be unwilling to pay double in order to buy an Apple over a competitor like Samsung or HTC.

Apple is due to release its latest iPhone model this year, and its pricing will speak volumes about how the company plans to move forward. Although Apple CEO Tim Cook has said that lowering prices isn't the answer, many are expecting to see the latest version come out at a more affordable price. The new phone will be smaller than the iPhone 6 and 6S, leading many to believe it could be sold as a cheaper option.