Citi Research says Apple will cut fiscal Q2 production of the iPhone XS Max in half

Citi Research says Apple will cut fiscal Q2 production of the iPhone XS Max in half
For perhaps the first time since the late Steve Jobs held up the original Apple iPhone for the world to see, the device is experiencing a serious sales slowdown. Apple has had to cut the price of both the iPhone XR and the iPhone XS. By trading in an older iPhone model, consumers globally can save some decent money on the purchase of one of those two 2018 iPhone models.

Now this doesn't mean that the iPhone XS Max has avoided the sales slowdown. In fact, a report issued today by Citi Research (via CNBC) forecasts that Apple will cut production of its top-of-the-line model by 48% during the fiscal second quarter from January through March. Citi Research Analyst William Yang told clients in a note sent today that he expects Apple to cut iPhone production to 45 million during the three month period, down 5 million from Citi's original forecast of 50 million. Yang sees the majority of that production cut coming from his forecast drop in the number of iPhone XS Max units rolling off the assembly line.

Citi Research isn't the only firm telling clients to expect a drop in iPhone production during the fiscal second quarter. Rosenblatt analyst Jun Zhang recently wrote his clients to warn them that he expects Apple to lower fiscal Q2 iPhone production by 4 million handsets during the same three month period. Unlike Citi Research's Yang, Rosenblatt's Zhang expects the bulk of the production cut to come from the iPhone XR (2.5 million units).

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82 Comments

1. darkkjedii

Posts: 31049; Member since: Feb 05, 2011

I hope Apple has something huge for the iPhone in 2019, cause other then the Big 8 flockerz, people are speaking with their wallets. We wanna see the iPhone take advantage of the power Apple. The light static, boring grid of icons ain't cutting it anymore. People see android devices with split view, picture in picture, Pencil support, free placed widgets, screen off memo, themes etc for less, and they want it. I'm not even sure the Big 8 can keep the iBoat afloat.

5. JMartin22

Posts: 2370; Member since: Apr 30, 2013

LOL, yeah, they have all this money, they need to do some more R&D on the firmware side.

7. midan

Posts: 2884; Member since: Oct 09, 2017

"People see android devices with split view, picture in picture, Pencil support, free placed widgets, screen off memo, themes etc for less, and they want it." Then the reality "A Consumer Intelligence Research Partners (CIRP) report stated that 16% of users migrated from the Android platform during the 30-day period after the launch of the iPhone XR. This compares favorably with 11% users who switched from Android after the launch of iPhone X in November 2017 and 12% after the launch of iPhone 8 and 8 Plus in September 2017."

8. darkkjedii

Posts: 31049; Member since: Feb 05, 2011

How about those huge iPhone salez broz

21. AxelFoley unregistered

Then the reality "Apple will cut production of its top-of-the-line model by 48% during the fiscal second quarter from January through March."

43. midan

Posts: 2884; Member since: Oct 09, 2017

Tell me something new, these same news about cutting orders happens every year. "Rumor claims Apple cutting iPhone 8 production orders in half" https://appleinsider.com/articles/17/10/19/rumor-claims-apple-cutting-iphone-8-production-orders-in-half 2016https://www.theverge.com/2016/1/5/10721350/apple-cut-back-iphone-orders-suppliers-china

73. AxelFoley unregistered

...and the rumors are confirmed when Tim Cook says "we're not reporting sales numbers anymore". Apple has gotten by by jacking up the price for the devices they do sale.

24. L0n3n1nja

Posts: 1559; Member since: Jul 12, 2016

You just proved Ifans are sick of the iPhone. Sales are down while taking a higher percentage of new users from Android, that means fewer iPhone users are upgrading to new iPhones.

42. midan

Posts: 2884; Member since: Oct 09, 2017

Less people upgrade because they are already very happy what they have. They upgrade when there's enought to offer for the price. It's getting harder every year for these companies to offer something worth of upgrade. That's why the whole industry is stagnant or down.

69. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

Actually with Apple they upgrade because Apple degrades the performance of the phone so you are forced to buy another. And the majority have. Ever upgraded anyways. The best thing is whatever iPhone yo8 have, unless its damaged, just use it until its either not supported or it breaks. Because a new iPhone doesn't offer any better experience that older models running the same version of the OS.

48. darkkjedii

Posts: 31049; Member since: Feb 05, 2011

Not to him it doesn't.

54. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Why would you think I should upgrade an iP 7+ (or even 6s+) to any phone of 2018, iPhones included?

80. ph00ny

Posts: 2031; Member since: May 26, 2011

Because it can't keep up with constant thermal throttling in some apps (ie games)

81. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

I know gaming is a big thing on mobiles but there are a lot of users - myself included - that couldn’t care less about playing games so I don’t know about throttling there, but outside of long time 4K video recording - which, btw, is not limited in time - and some very intensive media related tasks (and, if you say so, outside playing games - I don’t know what games, because I have played some rpgs without any issues) there’s hardly any heating on the 7.

26. Shkselectah

Posts: 45; Member since: Jun 26, 2018

In that survey, 165 apple clients took part, of which 16% is how many people turn out?

65. htcisthebest

Posts: 436; Member since: Nov 15, 2011

Only a fool will believe in those stats.

77. wickedwilly

Posts: 694; Member since: Sep 19, 2018

In the US, perhaps but even if the these are correct, in the world there are far more switchers from IOS to Android and many more first time buyers are opting for Android phones. Market share data clearly shows this. You really do love to cherry pick your data, which is often irrelevant anyway.

11. Dr.Phil

Posts: 2366; Member since: Feb 14, 2011

I've used both Android and iOS and I can tell you that split-screen, free-placed widgets, and picture and picture are not something that I want or even need in a smartphone. HOWEVER, I do think that split screen should be used in the iPad (I found myself just today wishing I could have the split screen to open up my email and a webpage side by side). And I do think that the iPhone Max should have a stylus or pen support. I also do agree with the usage of themes. I have wanted a dark theme forever on iOS and I hope they bring it to us since it's used on the regular Mac OS. Widgets for me are a pretty big gimmick. Whenever I have them on my home screen I find myself just opening up the full app instead of just having the widget there. The only useful widget is the weather or ones that only require you to glance at them (like stock symbol apps or your money apps). The other ones are gimmicky at best.

12. darkkjedii

Posts: 31049; Member since: Feb 05, 2011

As folks continue to speak with their wallets, those gimmicks will materialize. When iPad sales were becoming stagnant, all of a sudden Apple copied split screen, picture in picture, tap to note (screen off memo), and even the Apple Pencil from Samsung. It'll happen.

28. Dr.Phil

Posts: 2366; Member since: Feb 14, 2011

Like I said: in the iPad I would want to see split screen be more extensively used. However, when it comes to smartphones things like widgets or split screen are not something that you see people absolutely clamoring for. In fact, all of my friends that own a Note product have told me they have never used the feature. And widgets are very much a gimmick. I did say I agreed with bringing the stylus to the Max and the themes. But the split screen and widgets I disagree with you on.

82. Macready

Posts: 1821; Member since: Dec 08, 2014

And that's an opinion that I put in the same bin as: "those large screens are a gimmick. People don't care for them". Most people don't know or haven't experienced the benefits of most of those extra features. And sure, there are those that really do want less for more, because more confuses them. But that's not exactly representative for a whole worldwide market either. All of my widgets are highly functional and beneficial to me. As is using splitscreen functionality (browsing while chatting etc).

41. midan

Posts: 2884; Member since: Oct 09, 2017

"When iPad sales were becoming stagnant, all of a sudden Apple copied split screen, picture in picture" Not using any of those with my iPad, it just doesn't feel very intuitive, i also think most of people doesn't use those. IPad is so fast that it's just easier to jump between apps, than taking the time and split the screen. With phone it would be even worse.

49. darkkjedii

Posts: 31049; Member since: Feb 05, 2011

You're stupid dude. Not using them, doesn't mean that Apple didn't copy then to reinvigorate iPad salez. Who cares what you use, no one'z asking you that.

70. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

It doesn't feel intuitive because Apple's lockdown version of those suck. On Android it's better because you can split with purpose. Like dragging photos directly into an email or any file for that matter.

74. midan

Posts: 2884; Member since: Oct 09, 2017

"Like dragging photos directly into an email or any file for that matter." You can do this with iPad too, but it's just faster to go to photos, choose the photo and send it via Mail and it opens the mail app. Why would i want to use split screen which is slower and needs more steps.

76. Vancetastic

Posts: 1316; Member since: May 17, 2017

You’d like the iOS method if it involved standing on your head with your thumb in your butt, don’t kid yourself.

63. Dr.Phil

Posts: 2366; Member since: Feb 14, 2011

BTW, I did find a recent survey that found that the main reason people buy Android over iOS has to deal with the price. That's how people are talking with their wallets: not because of the user experience of the OS but rather the entry price for having said user experience. And it's true, the majority of iOS devices are priced on average $500 and above (and that's even with older hardware) whereas with an Android phone the entry price is much less. https://www.gsmarena.com/survey_reveals_that_android_users_switch_to_ios_mainly_for_a_better_user_experience-news-32922.php

71. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

You needed a survey for that? Not just price. More options at each price point. All of which are better that what Apple offers. Many phones include premium headphones, adapters, cases, better quality inbox accessories.

72. Dr.Phil

Posts: 2366; Member since: Feb 14, 2011

Unlike you, I like to back my claims up with actual evidence.

29. Vokilam

Posts: 1201; Member since: Mar 15, 2018

i dont care for split-screen, widgets, and p-in-p... I would want apple pencil support. I can also use a floating calculator (just the floating calculator) but ipad already has splitscreen and it works so well/smooth/and effective with drag and drop, floating apps - I facetime and do work all the time, and widgets are accessable on EVERYSCREEN even inside GAMES - just pull down from top.

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