Apple iPhone 6 could be Grinch for apparel retailers
That giant sucking sound you hear in retail stores this Christmas is Apple’s (AAPL) iPhone 6 hoovering up consumer dollars that could have been spent elsewhere. Canaccord Genuity consumer retail analyst Camilo Lyon said the iPhone 6 is “the Grinch who might steal Christmas” for U.S. retailers. In a research note Monday, he said the iPhone 6 could take a bite out of spending in other discretionary categories such as apparel and footwear this holiday season. “We estimate iPhone 6 upgrades and purchases will equate to $4 billion in retail sales in November and December, equating to approximately 16% of the $24.3 billion in incremental dollar growth expected this holiday season,” Lyon said. “Said another way, we estimate there will be fewer disposable income dollars to allocate to nonconsumer electronic categories and therefore consumers will be incrementally driven by both need and want-based purchasing decisions.”