More Evidence Emerges of Soft iPhone Sales

Apple's 2019 iPhones will reportedly adopt new antenna tech

Apple's 2019 iPhones will reportedly adopt new antenna tech

Lumentum, which supplies FaceID components for the iPhone XS, XS Max, and XR, has reduced its profit and revenue forecasts thanks to reduced orders from Apple.

Apple said earlier this month that it will no longer provide iPhone sales figures to investors.

According to a new report by Reuters, at least three iPhone suppliers have issued warnings on results to Apple that suggest weakening iPhone sales, causing the company's stock to hit a three month low today. He's got an wonderful track record-and that's not even to mention that Apple has announced it will stop reporting unit sales of its iPhones next quarter, suggesting Apple is expecting a downturn as well.

Apple is increasingly touting its base of 1.3 billion installed devices, rather than how many iPhones it sells each quarter. And Citi downgraded Skyworks to neutral and slashed its price target to $85 from $116, citing both "disappointing iPhone XR unit sales" and "broad smartphone weakness". Nikkei, a Japanese business newspaper, wrote that Foxconn, which assembles the iPhone XR, had cut as many as 15 production lines for the device.

Now, that's being backed up by new reports by analysts from JPMorgan and TF International Securities. "I expect iPhone shipments to decline to 200 million units next year and Hon Hai's Android smartphone unit FIH Mobile will also continue to struggle".

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.

England v NZ bigger than Lions tour:Hansen
It does not get any tougher than taking the all-conquering All Blacks and the world champions are next up for England . Last time we were here was 2015 and things didn't go that well for England .

'We have reduced our iPhone XR shipment estimation from 100mn units to 70mn during the new product lifecycle (4Q18 - 3Q19),' Kuo said in a note to investors. But when a sale does happen, suppliers get a one-time payment for their component, while Apple can generate hundreds of extra dollars per gadget.

Another data point potentially contributing to Apple's slide: Lumentum, a key supplier for parts that power facial recognition systems, said a large customer had cut its orders by 30% - and Apple is its top customer.

Adding to Monday's negative news, Longbow Research cautioned that Apple is facing weak iPhone demand in China.

A recent report noted that Apple's directive to suppliers translates to about 100,000 fewer iPhone XRs being made each day.

The main assembler of iPhones reported net income of NT$24.9 billion (US$806 million) in the September quarter, about 12 per cent below the average analysts' estimate.

Citi also cut its target on Qorvo on Monday due to iPhone XR weakness. "It doesn't matter a lot how many units there are in there in terms of the overall value of what's in the cart".

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.