Apple shares tank on iPhone sales warnings

Apple shares tank on iPhone sales warnings

Apple shares tank on iPhone sales warnings

"It's a reversal from a similar report issued in October in which Kuo said he expected the iPhone XR to be a big seller for Apple", CNBC reported on Monday.

According to StreetAccount, a couple of securities firms are fine-tuning their thoughts on what is going on now with the Apple iPhone.

"The legacy iPhone models forecast is likely to increase significantly thanks to more affordable prices; the total iPhone shipments in 1Q19 are likely to see a YoY decline", Kuo continued, citing Career and Nissha Printing as two suppliers that might be affected by Apple's cuts.

Estimates of Apple's "most affordable" 2018 model, the iPhone XR, has been cut by almost 30 million shipments, a famed Apple analyst has written in his research note. For tech suppliers facing the future, they have no other big client like Apple, ' said Arthur Liao, an analyst at Fubon Research in Taipei. Lumentum Holdings Inc. plummeted a record 33 percent after cutting its second-quarter outlook when one of its largest customers asked to "meaningfully reduce shipments" for previously placed orders. Japan Display dropped 9.5 percent, while Hon Hai Precision Industry Co., the main iPhone assembler, slipped to the lowest level in five years.

Apple cautioned earlier this month that it could miss Wall Street estimates for the holiday shopping season.

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"Although Apple has positioned itself as a super-expensive handset maker providing high-end products, its strategy has not been working in emerging markets including China and India as Chinese vendors have been making iPhone-like products", he said.

'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.

At its iPhone launch event in September, Apple introduced the lower-cost iPhone XR, made of aluminum, along with two other models, the XS and XS Max. "The Apple investment paradigm is moving away from a focus on device sales toward a more predictable services-driven business".

Apple stock is down over 10% since it said it would no longer disclose hardware unit sales on November 1 - and these reports suggest that it may be a while before the company has another unit growth spurt.

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