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The company expects price declines to ease in the coming quarters, a trend that by should eventually flip into price rises.
At Johnson Controls, the company expects price parity when battery costs achieve $200 per kilowatt-hour combined with gasoline prices that are consistently at or above $4 a gallon.
Jonathan De Mello, head of retail consultancy Harper Dennis Hobbs, says he expects price rises in all areas and that some retailers, especially in the clothing sector, will not survive the ensuing turmoil.
But in its financial statements the company says that it expects price competition to put pressure on gross margins for all consumer electronics industries and "especially for the iPod product line".
Despite some uplift for its mobile division, the company does also caution it expects price competition in the mass tier segment and competition from other flagship smartphones to ramp up this year.
The price of options on the stock of companies that issue investment-grade debt implies that the market expects price volatility of 50% during the next year (the Black-Scholes option-pricing formula converts an option price into an "implied volatility").
Similar(6)
"Everyone expects prices to keep going up".
This year, he expects prices to follow a more traditional pattern.
The Bank of Japan expects prices to go on falling this year.
The central bank also expects prices to continue falling.
The Bank of Japan expects prices to decline this year, too.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com