Another analyst reduces demand for iPhones in the first quarter of 2019. ReutersCiti Research lowered its forecast from 50 million to 45 million per quarter, mainly due to weak demand for the iPhone XS Max.
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While Citi is reducing the overall iPhone supply forecast by 5 million, the iPhone XS Max's forecast is becoming more significant. The firm lowers its forecast for a 6.5-inch device by as much as 48 percent in the first quarter of 2019.
In a note to investors, Citi analyst William Ian explained that the iPhone is entering a period of shrinking stocks, which is not good for the supply chain:
"A significant reduction in our forecasts is due to the fact that the iPhone 2018 enters the phase of reducing stocks, which does not bode well for the supply chain," writes analyst William Young in a note for the customer.
The iPhone XS Max is the most expensive iPhone Apple sells for as low as $ 1099 for an entry-level model to $ 1,449.
Citi Research is not the first to cut iPhone forecasts for the first quarter of 2019. Earlier this month, Rosenblatt predicted that Apple would cut orders for the iPhone in the March 2019 quarter. However, Rosenblatt predicted that the iPhone XR would get the biggest hit, with Apple reducing orders by about 2.5 million units. Ming-Chi Kuo also cut its iPhone sales estimates for the first quarter by 20 percent. Kuo predicts sales in the range of 38-42 million (compared with 50 million in the quarter last year in 2018).
The Wall Street Journal first reported last month that Apple cut iPhone orders across the board due to difficulties in forecasting demand using a three-tier ruler. Apple suppliers have also lowered expectations, probably due to Apple’s shrinking orders.
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