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Citi Research lowers Q1 2019 iPhone production estimates

By Cookie Monster - on 31 Dec 2018, 12:09am

Citi Research lowers Q1 2019 iPhone production estimates

From left to right: The Apple iPhone XS, iPhone XR and iPhone XS Max.

Citi Research joins the Wall Street Journal (WSJ) and analyst Ming-Chi Kuo in lowering production estimates for the 2018 iPhone lineup. 

In a client note released on Friday, Citi Research lowered its Q1 2019 production estimates for the iPhones and nearly halved expectations on the iPhone XS Max.

“The material cut in our forecasts is driven by our view that 2018 iPhone is entering a destocking phase, which does not bode well for the supply chain,” analyst William Yang wrote in a client note.

Earlier this year, Citi Research predicted production of 50 million units for the quarter. However, it now expects Apple to make only 45 million units due to the weak outlook for the iPhone XS Max. 

The WSJ wrote in November that the lower-than-expected demand led Apple to lower production orders, followed by well-known analyst Ming-Chi Kuo cutting his sales forecast for the iPhone XR. Bloomberg also reported that Apple reassigned some marketing staff to focus on boosting iPhone sales

Source: Reuters