Published: Thu, November 15, 2018
Money | By Bruce West

Apple Stock Hits a Three Month Low Amid Warnings from iPhone Suppliers

Apple Stock Hits a Three Month Low Amid Warnings from iPhone Suppliers

Apple didn't immediately reply to a request for comment late Monday. Apple itself has reported disappointing iPhone sales and projected holiday-quarter revenue below expectations.

The suppliers include Lumentum Holdings which supplies Apple with key hardware for Face ID along with Japan Display and IQE. Goldman's report is the latest evidence that analysts are now anxious iPhone unit sales are going to start shrinking in the short-term, which is believed to be the reason why Apple made a decision to stop reporting the key metric.

Following a poor forecast earlier this month, analysts and investors voiced concern over the state of Apple's business, contributing to growing worries that iPhone sales were stagnating and could hurt suppliers.

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

Apple's iPhone XR might not be the hotseller that analysts had predicted with noted analyst Ming-Chi Kuo slashing shipment forecast for the device.

Early in the year, the company confirmed it had been intentionally throttling the speeds of some older phones to avoid battery-related problems.

Apple tried to talk up the amount of cash it was making from services although bankers are not that happy with what Jobs' Mob has done about Apple Pay and are making their displeasure known.

JPMorgan analysts said iPhone unit sales could decline on an annual basis in both 2018 and 2019. Even Apple cheerleaders like Forbes are saying that Apple's current price of $195 per share is too high.

The Cupertino, California-based tech giant's shares fell to their lowest level in more than three months on Monday. "Also, the chances of further tax reform are close to zero, so I don't expect any more material reductions in Apple's reported tax rate", said Forbes' Jim Collins.

"Longer-lasting products could lead to higher customer satisfaction, potentially enable Apple to charge higher prices for its devices, and would help fulfill the company's environmental objectives", Toni Sacconaghi, an analyst at Sanford C. Bernstein & Co., wrote Monday in a note to investors.

Tim Cook, chief executive officer of Apple Inc., right, and Jony Ive, chief design officer for its product launch last in September.

"To account for this new information, we are reducing our iPhone XR/XS Max/XS units estimate, while increasing estimates of lower priced iPhone units", the Goldman analysts wrote in a note distributed on Tuesday.

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