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Fatima Ait Taleb – Dubai – The famous Chinese analyst Ming-Chi Kuo continued to monitor the pulse of Apple's component suppliers and found that it was slowing down. This has therefore prompted to reduce by 30% the total number of iPhone XR units that should be delivered.
Ming-Chi Kuo had previously predicted that 100 million units would be shipped between the fourth quarter of 2018 and the third quarter of 2019. However, Apple is now expected to deliver only 70 million, half of which are shipments. will be shipped during this quarter (30 to 35 million units). Figures for the first two quarters of 2019 have been reduced to 25 million units and 15 million units, respectively.
Consumers in general do not want to buy the iPhone XR, as originally thought by Apple. Buyers in China were expecting a lower price or at least products like a dual rear camera and a thinner screen frame. Despite the value of the iPhone XR, the Huawei Mate 20 series' special offers have significantly harmed potential sales of Apple.
The poor performance of the iPhone XR reduce expectations for total iPhone shipments, which are expected to decrease by 20% in the first quarter of 2019 compared with the first quarter of this year. Shipments of older models of iPhone should experience a recession, but not all.
All this worries the component suppliers, which will reduce the orders they will receive in anticipation of a reduction in shipments. This will affect their profits over the next two quarters.
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