Sunday, 24 March, 2019

Apple has a Plan B as iPhone demand peaks; Many suppliers don't

More Evidence Emerges of Soft iPhone Sales Apple, suppliers tumble as signs mount of weak iPhone demand
Russell Knight | 13 November, 2018, 20:20

And Citi downgraded Skyworks to neutral and slashed its price target to US$85 from US$116, citing both "disappointing iPhone XR unit sales" and "broad smartphone weakness".

'For Apple, the iPhone shipment has reached its peak.

Among other Apple suppliers in the region, Hong Kong-based acoustic components maker AAC Technologies Holdings Inc fell more than 6 percent.

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.

Apple is down more than 4% on Monday after a slew of analyst reports suggested that iPhone unit sales could drop year over year as soon as the first quarter of 2019.

The firm hoped the iPhone XR would persuade owners of older iPhones to switch to the newer model, which costs $749 (£749) - a sizable discount from the $999 iPhone XS and the $1099 XS Max.

Moves from several Apple suppliers have also given credence to rumors of poor iPhone XR reception.

Israel Says Carrying Out Air Strikes "Throughout Gaza Strip"
Eyewitnesses said a house was targeted by Israeli war jets in the town of Rafah in the southern Gaza Strip. Although violence in Gaza has flared sporadically in recent months, Monday's exchange reached a new pitch.

Officials begin agonising search for fire victims
So far it has burned more than 109,000 acres and is nearly 25 percent contained as of the most recent reporting by BBC News. In other places in the state, fires were more selective, leaving some houses leveled and others still standing.

Brady responds to Dion Lewis' 'cheap' comment
Although they're back on good terms, Sunday gave Vrabel a chance to defeat his former coach. "It's a real sweet win", Lewis said. I think people have different emotional feelings", Brady told WEEI on Monday morning . "Dion had a great career here.

South Korean electronic parts suppliers Samsung Electro-Mechanics Co Ltd, Apple's supplier of multi-layer ceramic capacitors, dropped more than 5 percent, while LG Innotek Co Ltd plunged 9.5 percent.

The development "is not entirely surprising" but "it seems very likely to us that the market for 3D sensing-related light sources and other components is going to be smaller next year than previously anticipated", James Kisner, an analyst with Loop Capital Markets, said in a research note. The company also said it would stop providing unit sales for iPhones, iPads, and Macs in fiscal 2019, a step Nomura Instinet said raised "the specter of a sustained iPhone downturn".

The slide may also reflect concerns that Apple knows that iPhone unit sales are going to go negative in the short-term, which is why it chose to stop reporting unit sales.

"Apple is no longer a traditional hardware business", said Gene Munster, a veteran Apple analyst at Loup Ventures.

'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'.

Apple CEO Tim Cook was directly asked about this possibility during Apple's most recent conference call.

iPhone anxiety is hitting Apple's stock again.

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