Reuter reports that Citi Research has cut its forecasts for Apple’s iPhone XS Max by nearly half and reduced its Q1 production estimates for iPhones amid falling smartphone demand.
Citi analyst Willliam Yang explains, “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.”
Apple’s most expensive iPhone, the iPhone XS Max, experienced a 48 percent dip in Citi’s report.
The brokerage also slashed its iPhone’s Q1 production estimates from 50 million to 45 million, a 10 percent decrease.
This adjustment mirrors TF International Securities who recently reduced its shipment forecast by 20 percent.
These less-than-stellar estimates have resulted in the stocks of iPhone assemblers like Foxconn Technology Co Ltd and Hon Hai Precision Industry Co Ltd receiving a “sell” rating from Citi and other firms.
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