The worst could be over for iPhone sales.
Ming-Chi Kuo, a well-known TF International Securities analyst and frequent source of Apple supply chain-related speculation, says that he expects Apple’s slipping iPhones sales will begin to level out in the second half of 2019.
In Kuo’s latest TF International Securities research note, which was first obtained by MacRumors, the analyst states that “the share prices of Apple and most iPhone suppliers are generally priced in the negative.” Kuo estimates that Q4 2019 iPhone shipments will amount somewhere between 36-38 million units instead of his initial estimate of 38-42 million.
Further, Kuo goes on to claim that the “demand for new models in China and emerging markets is lower than expected.” With that in mind, he also says that this decline will begin to ease in the second quarter of 2019 as long as the United States-China trade war does not continue to worsen.
Finally, Kuo says that he expects iPhone shipments to be flat in the second half of 2019 compared to the second half of 2018. In total, he predicts that Apple will ship approximately 188 to 192 million iPhones in 2019. While Kuo believes a year-over-year decline in iPhone shipments will continue, the downturn will soon begin to slow down.
Back in early January, Apple issued a rare earnings guidance revision, lowing its Q1 revenue forecast by $9 billion USD ($12 billion CAD).
The Cupertino, California-based company initially predicted revenue between $89 billion ($121 billion CAD) and $93 billion ($126 billion CAD) for the quarter. Apple now forecasts $84 billion USD ($114 billion CAD) in revenue for the first quarter of 2019