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Analyst Announces Weak Forecast For iPhone Sales: Demand For Apple’s Flagship Declining?

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Apple's much talked-about flagship, the iPhone X, doesn't seem to be doing very well according to the general mood analysts are giving off. Noted Apple forecaster from KGI Securities, Ming-Chi Kuo, has already made a claim saying poor sales could lead to its discontinuation. Now, another analyst has weighed in, and their forecast for iPhone sales in general isn't looking good either.

Demand For iPhone Declining?

Check with supply-chain vendors, in addition, indicate that Apple's iPhone sales may decline about 33 percent between the December 2017 and March 2018 quarters, according to Toni Sacconaghi, an analyst from Bernstein.

Sacconaghi predicts that the Cupertino brand will offer implied guidance of 51 to 57 million units sold for the March financial quarter, much lower than the consensus guidance at 62 million units.

Of course, that's not different from what has occurred before. Apple typically sells about 30 percent fewer iPhone units after the holiday period, according to the analyst. However, Wall Street expected the $1,000 iPhone X to initiate a "super-cycle" thanks to its radical design. If this year turns out to be a typical scenario sales-wise for Apple, investors who expected the iPhone X to change that will surely be displeased.

In addition, J.P. Morgan has also cut its financial estimates for iPhone suppliers as demand for Apple's flagship phones is said to be declining. iPhone sales for Apple's Q2 and Q3 2018 periods have been reduced, according to the report, adding that Apple's supply chain analysts lowered their iPhone production forecast from 60 million to just 55 million for the March quarter and from 50 million to just 40 million for the June quarter.

The gloomy forecast is similar to what Apple chip supplier TSMC said last week, stating it expects high-end smartphone shipments to decrease in 2018.

Apple is set to announce its sales performance this coming Feb. 1, where it's expected to reveal record-breaking results for Q1 2018. However, the company may have some difficulty keeping up the momentum throughout the year, perhaps because of the iPhone X's significant price point.

The Apple Super-Cycle Is Going To Happen

Kuo, however, thinks that the so-called super-cycle could still happen later this year as Apple is said to be releasing three brand-new iPhone models this coming September, including a redesigned entry-level flagship one.

Thoughts on the above predictions? Do you think Apple can still pull off a super-cycle? As always, feel free to sound off in the comments section below!

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