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Poor iPhone Sales Expected As Suppliers Fight Apple’s Serious Cuts

(Source: forbes.com)

Apple has pushed a message of innovation and excellence with the iPhone XR, iPhone XS, and iPhone XS Max smartphones. That confidence isn’t being picked up by consumers, and more signs are appearing that sales of the 2018 handsets are falling below Apple’s expectations.

Vibhuti Sharma writes for Reuters:

Lumentum Holdings Inc, the main supplier of the Face ID technology in the latest generation of iPhones, cut $70 million off its forecasts for revenue on Monday, knocking another 5 percent, or around $50 billion, off Apple’s value in morning trade on Wall Street.

Although not mentioned by name, many other suppliers of critical parts to the iPhone hardware are reporting that their ‘largest client’ is cutting back on orders, including display and chip manufacturers. Given the nature of the market and the small pool of suppliers, the obvious candidate client would be Apple and the new iPhone handsets.

Once you take these data points and collate them with details on the cut in production lines by 25 percent at the Foxconn assembly factories, weaker pre-orders, lower demand, and Apple’s attempt to change the narrative away from unit sales onto income from services; a picture becomes clear.

There is no super-cycle, there is no hockey stick in the iOS market share and iPhone sales – which have been relatively static since the iPhone 6 was launched – are either flat or ready to fall.

Now read more about the missed opportunity for Apple to pivot around during 2018…

More Info: forbes.com

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