Apple cutting iPhone sales forecasts 20% in response to the high-end smartphone slump

Apple cutting iPhone sales forecasts 20% in response to the high-end smartphone slump
Chain checks reveal that Apple might have warned suppliers to prep for a 20% decrease in component orders for the iPhone in the second half of the year, indicate analyst sources.

Brian Blair of Wedge Partners said that this seems to be in response to the overall flagship smartphone market saturation, which already sent Samsung and HTC's stocks down to new lows. Apple, his sources said, is now predicting 90 to 100 million iPhones sold, instead of 115 to 120 million.

The scramble now is, however, for the mid-range market, which is growing in leaps and bounds, and receiving special attention from Samsung, and, it seems, Apple as well, since the analyst confirms a lower-cost iPhone is in the works, with cheaper components, which will be its battle horse against Samsung's midrange onslaught. 

Brian Blair also mentions that Apple will be producing a TD-SCDMA iPhone for China Mobile, and that's one huge potential market within the largest carrier in the world. "So the bottom line is, there's lots of little signs that are pointing to slowing growth for high-end smartphones, and I think Apple's reacting to that," he added.

source: CNBC

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