Analyst sees Apple cutting iPhone production by 4 million units in fiscal Q2

Analyst sees Apple cutting iPhone production by 4 million units in fiscal Q2
According to Seeking Alpha, Rosenblatt analyst Jun Zhang recently sent a note to clients with his prediction that Apple could cut iPhone production by four million units during its fiscal second quarter, which ends in March. The analyst based his forecast on weaker sales in China, but probably not for the reasons that you're thinking of. It actually has nothing to do with the ruling made earlier by a court in China that found Apple liable for infringing on two Qualcomm patents. The court imposed preliminary import and sales bans on iPhone models ranging from the iPhone 6s to the iPhone X; Apple is continuing to sell these models in the country with an updated operating system.

The analyst says that weakness in Chinese iPhone sales will come from companies in the country that support Huawei. After the recent arrest of Huawei's CFO for allegedly using the global banking system to make illegal sales to Iran, a Huawei supplier named Menpad said that it will fine employees who purchase an iPhone. It will also subsidize employees who purchase phones made by Chinese companies including Huawei. Other companies in China are apparently doing the same thing.

While we can't see how this show of nationalism in China could reduce iPhone sales by 4 million units, the analyst sees Apple cutting iPhone XR production by 2.5 million handsets, iPhone XS production by 1 million phones, and production of the iPhone XS Max by 500,000 units from January through March.

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35 Comments

1. Supah

Posts: 692; Member since: Mar 08, 2017

It's a bad time to be an iTrolling & iTriggered iTroll.... And Victor H, too iLMAOOOOOOOOOOOOOOOOO

2. Kuroki

Posts: 183; Member since: Nov 24, 2013

he's iCrying right now lol. We're going to get iBanned at this rate LOL

3. Supah

Posts: 692; Member since: Mar 08, 2017

Don't worry, they're too busy iModerating comments like we're in N Korea.

4. SIGPRO

Posts: 2813; Member since: Oct 03, 2012

Bye bye fruit company!

5. darkkjedii

Posts: 30900; Member since: Feb 05, 2011

Analyst sees Peaceboy upping iPhone purchasing by 4 million units in fiscal Q2

6. Supah

Posts: 692; Member since: Mar 08, 2017

iRouyal's parents' home has been on the market since about an hour ago and piyath da iGod iWorshiper's going to rob a bank tonight. Nate Diaz Lover also wants to iHelp out but his parents grounded him for two weeks so there's nothing he can do at the moment.

11. kanagadeepan

Posts: 1232; Member since: Jan 24, 2012

Haha.. Yes, and call others as poor, because they can't buy 4 million iPhones for themselves..

7. baldilocks

Posts: 1486; Member since: Dec 14, 2008

Are you all 12 years old??

10. lyndon420

Posts: 6599; Member since: Jul 11, 2012

The whole iReference thing was funny a few years ago, but yeah it is getting really old really fast. He loses a lot of whatever he's trying to achieve with such commentary. And calling others out by name/username on here...it's like a keyboard-schoolyard thing for some on here.

12. Supah

Posts: 692; Member since: Mar 08, 2017

"The whole iReference thing was funny a few years ago, but yeah it is getting really old really fast." Didn't iTrolls used to say that a few years ago? Glad to know that the whole iReference thing is always bothering the iTrolling iBrotherhood.

14. lyndon420

Posts: 6599; Member since: Jul 11, 2012

No... actually they didn't. They used the term 'troll' when their logic failed to produce anything more of worthy substance - similar to how they now turn to insults as a last resort. Us Android users turned it back on them afterwards with the term 'iTroll'. But you take the whole iTerm thing too far...it's like you just discovered swear words, and turned 18 all at once. It's old dude.

15. Supah

Posts: 692; Member since: Mar 08, 2017

No, actually they did :) iBro, please stay iTriggered because I'm gonna say whatever I want say and there's nothing you or da iTroll crew can do to stop me. Now get iLost. ILMAOOOOOOOOOOOOOOOOO

26. lyndon420

Posts: 6599; Member since: Jul 11, 2012

The iPhone users here on PA have never referred to Android users as iTrolls. Try again.

30. Supah

Posts: 692; Member since: Mar 08, 2017

See post #15 and please stay iTriggered. Or iTry again iLMAOOOOOOOOOOOOOOOOO

27. Vancetastic

Posts: 951; Member since: May 17, 2017

Ignore it. The more you talk about it, the more he’s gonna do it. Trust me, I have a toddler.

31. Supah

Posts: 692; Member since: Mar 08, 2017

Oh PA's most infamous cheerleader has joined us eh?

32. lyndon420

Posts: 6599; Member since: Jul 11, 2012

Yeah it's definitely starved for attention. Going out of its way to sound immature.

33. Supah

Posts: 692; Member since: Mar 08, 2017

You iWhined about this to me a few weeks ago and I told your iWhinyass that you do have a choice, not to read my post. But since you're soooo iAngrily iTriggered, you just had to show everyone here how much the whole iReference thing bothers you again iLOL Like I told you(iTriggered iLyndon da iPothead) before, see post #15 and please stay iTriggered. Or iTry again. iLMAOOOOOOOOOOOOOOOOOOOOOOO

8. L0n3n1nja

Posts: 1526; Member since: Jul 12, 2016

Apple stock is sure tanking fast.

9. Vokilam

Posts: 1150; Member since: Mar 15, 2018

I’m glad that reality finally forcing this company down to Earth. Apple needs to start focusing on their products more and less on the Apple “message”.

13. CreeDiddy

Posts: 2134; Member since: Nov 04, 2011

This is a clear indicator that iPhone refresh upgrades aren’t what the consumer should be getting. More like innovation year to year. Apple has to make 2019 special if not, could be troubling times for the fruit company...They would focus all their attention on services.

16. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

Could be troubling times? They in trouble right now dude. Are you ind? Sales are dropping on every product they make except maybe 2....the Watch and the AirPods. But if no one is buying phones, theyarent gonna buy those either. Right? So Apple is in trouble. That also means less app sales because less iPhones and iPads sold means less apps being downloaded and purchased. Apple is in trouble now and all the fans who were saying Apple isnt in trouble are all curl up under the Apple tree praying to their dead god. In this industry there are few comps ies who went from bottom too top and then fall a d make it back to the top again. Apple had a chance and Damsung did too. But both are gonna fall. Ut Apple is gonna fall harder because they are the only iOS OEM. And the Dtagon is about to pounce and burn then "snap". Unless Apple drops prices, they ate gonna keep calling because they have already priced themselves out of selling your own kidney territory now. To but a. IPhone now, you would literally need to sell your soul to the devil himself. Selling kidneys and lovers ain't enough.

17. Vokilam

Posts: 1150; Member since: Mar 15, 2018

Techie, apple is outperforming the smartphone market -- by all account - all manufacturers are seeing drastic drops in shipments. Personally, it makes me happy that this is also happening to apple: 1. they are leading the industry's prices too high, 2. when this happened to samsung - they turned around, cleaned up their software, and started building great devices (despite of note 7 problems)... hoping to see the same from apple when the snot hits the fan (as they say).

20. mootu

Posts: 1449; Member since: Mar 16, 2017

"Techie, apple is outperforming the smartphone market -- by all account - all manufacturers are seeing drastic drops in shipments." Nope. All the OEM's that didn't get too greedy and offer value for money are doing really well. Huawei / Honor, Xiaomi, Oppo, Vivo, OnePlus, Nokia have all seen massive increases in shipments this year.

23. Vokilam

Posts: 1150; Member since: Mar 15, 2018

I'm sorry, i thought it was common knowledge that Apple doesnt cater the market in which all those companies are selling well.. let me rephrase: apple is outperforming the $750+ market (you know, where every company wants to be).. not the market that apple doesnt build for at all...

24. midan

Posts: 2597; Member since: Oct 09, 2017

"All the OEM's that didn't get too greedy and offer value for money are doing really well." It's not about being greedy, it's normal business and companies need to make money to survive and do well. With size of Apple and Samsung as a company the price can't be as low as those Chinese companies. Thats why Samsung is in very big trouble just like Apple would be if Chinese companies could sell iOS phones, but biggest advantage for Apple is their own OS.

18. midan

Posts: 2597; Member since: Oct 09, 2017

"That also means less app sales because less iPhones and iPads sold means less apps being downloaded and purchased. " This is actually false logic, but what can expect from you? The current users who don't need new iPhones and iPads are still buying apps and then you add those new iPhone and iPad users too. Propably the numbers are only going up a lot just like they been all these years. And then the reality https://www.phonearena.com/news/App-downloads-rise-10-per-cent-in-2018_id112148 "According to preliminary numbers from app analytical firm App Annie (via Tech Crunch), app downloads rose in number in 2018 to 113 billion. That is a 10% hike over last year. Spending on apps also rose to over $76 billion. That is a 20% increase from 2017. The numbers were crunched from both the Apple App Store and Google Play Store through December 15th, 2018" Apple is already selling less and yet their numbers are up that much, so yeah again you are wrong

19. notfair

Posts: 711; Member since: Jan 30, 2017

don't worry y'all, next year they will increase the prices even more to compensate the losses.

21. Peaceboy

Posts: 640; Member since: Oct 11, 2018

Can’t distinguish now between analysts and poor androids. Now i want the next iPhone to be $1500 so few could only get it. Tired of these people who can only pay $599 for a phone.

25. darkkjedii

Posts: 30900; Member since: Feb 05, 2011

iPhones are available on Boost mobile, for BOGO deals, and installments fool. They’re also selling way less, so they’re readily available for cheap.

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