There's more and more evidence that Apple's latest iPhones (AAPL) are not triggering the kind of sales growth Wall Street expected. An analyst said that the stock of the iPhone XR was "bloated", which led to cuts in the production plans and the Apple stock fell.
JPMorgan said on Monday that it now expects a slight decline in iPhone shipments year-on-year for both calendars in 2018 and 2019. He reduced his earnings estimates due to the lowered iPhone sales forecast.
JPMorgan analyst Samik Chatterjee lowered its price target for Apple shares from 270 to 266, but maintained its overweight rating. Apple stock dropped 5% to 194.17 as Wall Street collapsed on today's stock exchange on today's trading day.
He blamed a weaker macroeconomic environment in emerging markets and the "weak" demand for iPhone XR for lower-than-expected iPhone sales. 19659006] Better than expected demand for high-end iPhone XS and XS Max partially offset the lower sales of the iPhone XR in midfield, he said.
IPhone XR production lowers supplier
Longbow Research on Monday said: "Sharp iPhone production cutbacks hit suppliers Longbow ranks Apple stock as neutral.
Spot checks on suppliers have been late last week Highlighting cuts in iPhone orders by 20% to 30%, Longbow analysts Shawn Harrison and Gausia Chowdhury said in a report that was mainly related to the iPhone XR and XS Max. Apple increased orders for lower-priced, older iPhone Models including the iPhone 8.
Internet search trends for the iPhone in China "fell off the beaten track in October," they said, signaling a "fluctuating demand from China."
Apple iPhone Story "Showing Cracks"
"iPhone history shows cracks in contacts invoking weaker iPhone orders from year to year and Baidu (BIDU) iP hone search trends highlighting a red flag, "she wrote.
iPhone Component Providers Lumentum Holdings (LITE) on Monday cut its second-quarter sales forecast by about 17% and its earnings outlook by about 17% to 25%, according to a nameless customer that he is Apple reduced his orders significantly. Lumentum manufactures 3D sensors for facial recognition technology on Apple's latest iPhone.
Also Monday, Japan Display, one of the main suppliers of liquid crystal displays for iPhones, lowered its year-round forecast and cited the "volatile customer demand". "
Last Thursday, another iPhone parts maker Skyworks Solutions (SWKS) announced a forecast for the December quarter that was well below Wall Street's goals, with Skyworks slashing sales of high-end smartphones and the general softness in China is responsible for the failure Skyworks manufactures power control, radio frequency, and other chips for the iPhone.
KeyBanc Capital Markets announced that its recent survey among mobile operators has seen an inline demand for the iPhone XS and XS Max revealed, "However, selling iPhone XR was not enough," analyst John Vinh said in a statement to customers on Friday, calling the stocks of the iPhone XR "bloated."
Apple Shares Receive Service Price Potential Increase
Apple iPhone XR Sales Call "Weaker than Expected"