More Evidence Emerges of Soft iPhone Sales

More Evidence Emerges of Soft iPhone Sales

More Evidence Emerges of Soft iPhone Sales

Speculation from news organizations like Reuters are reporting that the company to which Lumentum is referring to is Apple.

The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co, fell 2.6 percent, while Flexium Interconnect Inc was down 1.5 percent. Rival Pegatron Corp fell more than 5 percent but later recouped losses. The Taiwan Weighted Index was down around 1.6 percent.

The analysts said they are anxious that "end demand for new iPhone models is deteriorating".

A recent report noted that Apple's directive to suppliers translates to about 100,000 fewer iPhone XRs being made each day. One factor that hasn't been discussed widely is that Apple's advertising campaign for the iPhone XR practically seems non-existent.

"For Apple, the iPhone shipment has reached its peak". Previous iOS upgrades supported gadgets dating back several years, but this is the first time Apple has prioritized enhancing the speed of older iPhones.

Shares of the tech giant slid as much as 5 percent Monday on a profit warning from a parts supplier for the company's new iPhone XR - a new, lower-priced model that has been positioned to drive big sales.

'With no new technology in sight next year for the supply chain, this is not ideal for the companies involved, ' said Nicole Tu, a Taipei-based analyst at Yuanta Investment Consulting.

In Asia, Japan Display Inc. slashed its forecasts for sales growth and operating margins, citing volatile customer demand.

Blaming foreign exchange costs and weakness in emerging markets like India, where customers are ditching iPhones for cheaper Chinese alternatives, Apple has already warned its investors that holiday sales would miss Wall Street expectations.

Estimates of Apple's "most affordable" 2018 model, the iPhone XR, has been cut by almost 30 million shipments, a famed Apple analyst has written in his research note.

The main assembler of iPhones reported net income of NT$24.9 billion (US$806 million) in the September quarter, about 12 per cent below the average analysts' estimate.

"'(This) indicates that the company itself is not confident about its performance at the moment", said Park Jung-hoon, a fund manager at HDC Asset Management, which owns Samsung Electronics shares.

Jobs, for all his faults, did manage to save Apple with a couple of products which worked - the iPod and iPhone - but even he was running out of ideas before the end (iPads anyone?) and the issue of what to do next was never resolved.

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