Every week a new report of iPhone production cut surfaces around analysts circles. Now according to the research shop Rosenblatt a new cut is expected to happen towards March quarter.
The iPhone XR will be taking the biggest hit, as it may see a cut of over to 2.5 million out of the 4 million order dive. The iPhone XS is expected to see a cut of 1.5 million, while the most premium large-sized XS Max variant is expected the smallest drop in production of almost half a million units.
“Our iPhone estimates have been lowered to 39 mln units for the March quarter, and we believe iPhone shipments will be down 10% y/y in C2018, as we already expect Apple might continue cutting their production for the March quarter. We will review our estimates in January, but we continue to believe Street estimates for March and C2019 still need to come down.”
Gizchina News of the week
According to the analyst the new drop in iPhone sales, the arrest of Huawei’s heiress by the Canadian government on the request of US government for violating sanctions against Iran is generating a headwind against the US iPhone maker. China also retailed by granting an injunction against older iPhones in the Qualcomm patent case against the Cupertino-based company. To add some heat into Apple’s cauldron of problems, Germany also made Apple pull iPhone 8 Plus and below from stores until the patent lawsuit dust settles.
The tepid demand for newer iPhones plus all the troubles with potential bans on older models in some markets sounds like a perfect storm for Apple. For the first time in three years, seems that the company’s stock price will reach the “Death Cross.”
