Apple Stock falls as an inventory of the iPhone XR called "inflated"

The proof continues to mount that AppleThe latest (AAPL) iPhones do not result in the kind of sales increase that Wall Street was expecting. An analyst said iPhone XR stocks were "swollen", resulting in a reduction in production plans and Apple's stock plummeted.

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JPMorgan announced Monday that it is now expecting a slight decline in iPhone shipments from one year to the next for the months of 2018 and 2019. It has reduced its earnings forecast on its iPhone sales forecast down.

JPMorgan analyst Samik Chatterjee lowered his price target on Apple stocks from 270 to 266, while maintaining his overweight position. The Apple action fell 5% to 194.17 amid a difficult day for Wall Street today.

He questioned the weaker macroeconomic backdrop of emerging markets and the "tepid" demand from the iPhone XR for iPhone sales below expectations.

The better-than-expected demand for the high-end iPhone XS and XS Max partially offsets the decline in mid-range iPhone XR sales, he said.

The production of iPhone XR reduces the number of suppliers

Longbow Research said Monday that "sharp cuts in iPhone production" were hitting component suppliers. Longbow notes Apple's shares as neutral.

Spot checks made with suppliers late last week have highlighted a 20% to 30% reduction in iPhone orders, said analysts Longbow, Shawn Harrison and Gausia Chowdhury. The reductions mainly concerned the iPhone XR and XS Max. Apple has increased its orders for cheaper and older iPhones, including the iPhone 8, they said.

In addition, Internet search trends for iPhone in China "have collapsed for October," they said. This is a sign of "declining Chinese demand".

Apple iPhone Story & # 39; cracks showing & # 39;

"The history of the iPhone is showing problems with contacts now citing weaker iPhone orders from year to year and Baidu (BIDU) iPhone search trends highlighting a "red flag," they wrote.

IPhone component provider Lumentum Holdings (LITE) on Monday reduced its revenue forecast for the second quarter by 17 percent and its earnings outlook by 25 percent, after an anonymous customer, supposed to be Apple, reduced its orders significantly. Lumentum manufactures 3D sensors that power the facial recognition technology of the latest iPhones from Apple.

Also Monday, Japan Display, a leading provider of LCD screens for iPhone, canceled its forecast for the year, citing "unstable customer demand."

Last Thursday, another iPhone parts supplier Skyworks Solutions (SWKS) have announced forecasts for the December quarter well below the Wall Street targets. Skyworks has blamed the decline in sales of high-end smartphones and the general weakness in China in management. Skyworks manufactures power control, radio frequency and other chips for iPhone.

KeyBanc Capital Markets said its latest survey of mobile operators indicated an online demand for iPhone XS and XS Max. But "the sales of the iPhone XR have been disappointing," analyst John Vinh said Friday in a note addressed to customers. He called the inventories of the iPhone XR "inflated".

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Apple's iPhone XR sales were described as "weaker than expected"