Published: Wed, November 14, 2018
Money | By Ethel Goodwin

More Evidence Emerges of Soft iPhone Sales

More Evidence Emerges of Soft iPhone Sales

The British company joins a list of firms in Apple's supply chain that have warned on their profits, pointing to weakness in iPhone sales.

Kuo now expects Apple to ship 70 million iPhone XR units during the holiday quarter, down from his original forecast of 100 million units.

"IPhone XR parts suppliers such as Career and Nissha printing would be "the major losers resulting from the XR cut because these two firms can not benefit from the increased shipment estimations of legacy models", added the report.

TF International Securities analyst Ming-Chi Kuo had similar observations in a note released on Monday.

Japan's Nikkei reported earlier this month that Apple had told its smartphone assemblers Foxconn and Pegatron to halt plans for additional production lines dedicated to the iPhone XR, the cheapest of this year's new launches.

Apple's iPhone XR, which boasts the iPhone X's edge-to-edge display, albeit using older LCD pixels instead of the X's high-resolution OLED screen, was widely expected to fuel a massive wave of upgrades from users of the iPhone 6S or earlier models.

Most of the new iPhones are priced at $999 and up, with the tricked-out iPhone XS Max going for as high as $1,449.

Lumentum blamed the cut in numbers it gave originally just 12 days ago on a client that was "one of our largest. for laser diodes for 3D sensing", which analysts said could only be Apple. "Apple got cautious in their guidance and it's hitting their suppliers", Elazar Capital analyst Chaim Siegel said.

"Many suppliers have lowered numbers due to their unnamed 'largest customer, ' which is Apple", said Elazar Capital analyst Chaim Siegel.

But there's no back-up for numerous companies that supply components for the iPhone.

"We believe these challenges are largely cyclical and investors should pay greater attention to the transformation to services, where Apple was able to report quarterly record revenue of $10 bn in [the most recent quarter] despite a regulatory challenge in China", the JPMorgan analysts write.

"For Apple, the iPhone shipment has reached its peak". The second thing is this is a little bit like if you go to the market and you push your cart up to the cashier and she says, or he says how many units you have in there?

The stock was up 4 percent on Tuesday.

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