Qorvo joins other Apple suppliers in cutting forecast

Qorvo joins other Apple suppliers in cutting forecast

Following a poor forecast earlier this month, analysts and investors expressed concerned about Apple's prospects and said its smartphone sales might be stagnating.

Lumentum, whose shares crashed 30 percent on the warning, didn't specifically mention Apple in its statement. Lumentum, which supplies FaceID components for the iPhone XS, XS Max, and XR, has reduced its profit and revenue forecasts thanks to reduced orders from Apple.

According to StreetAccount, a couple of securities firms are fine-tuning their thoughts on what is going on now with the Apple iPhone. And Wall Street analysts continue to pare their expectations for the company as Apple suppliers make the outlook for the iPhone even murkier.

Goldman Sachs became the latest bank to become more bearish on Apple in a note distributed on Tuesday.

In the fourth quarter, Apple sold 46.9 million iPhones, missing analyst expectations of 47.5 million iPhones, according to FactSet. Apple also provided lukewarm guidance for the all-important holiday quarter. Starting at $750, the iPhone XR is a significantly cheaper alternative to Apple's flagship iPhone Xs and Xs Max but may still be out of many consumers' budgets.

"It is hard to give Hon Hai a positive rating", said Arthur Liao, an analyst at Fubon Securities, who characterised the result as neutral with most investors concerned about the outlook. Apple said it preferred to focus on the company's transition to a services company, with regular recurring revenue.

"Over the past 10 years, Apple's iPhone ASP has increased a dramatic $220, or 40%, reflecting its growing value to both consumer and business markets, but almost HALF of all that just came in FY18 alone, making a period of digestion now likely".

More recently, Apple launched a new version of its operating system, iOS 12, that supports an unprecedented 28 of the company's devices, including models that went on sale in 2013.

JPMorgan analysts said iPhone unit sales could decline on an annual basis in both 2018 and 2019 due to weak demand in emerging markets.

"A year ago AAPL looked like a table-pounder when iPhone units were weak", Guggenheim wrote in its note on Wednesday. Since the start of this month, the company's stock price has fallen 13.5%.

'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'.

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