But other analysts cut iPhone demand for the first quarter of 2019 ReutersCiti Research has lowered its estimate from 50 million to 45 million for this quarter, mainly due to weak demand for iPhone XS Max.
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While Citi cut its overall iPhone shipment estimate by 5 million, the estimate of the iPhone XS Max has experienced a much greater increase. The company lowered its estimate for a 6.5-inch device by 48 percent for the first quarter of 2019.
In a note to investors, Citi William analyst Yang explained that the iPhone is entering a destocking period, which is not good for the supply chain:
"Cutting material in our estimates is driven by our view that the 2018 iPhone is entering a destocking phase, which does not bode well for the supply chain," analyst William Yang wrote in a client note.
The iPhone XS Max is the most expensive iPhone sold by Apple, starting at $ 1,099 for the entry-level model and making $ 1,449.
Citi Research is not the first to cut estimates for the iPhone Q1 2019. Earlier this month, Rosenblatt estimates that Apple will cut iPhone orders for the March 2019 quarter. But Rosenblatt predicts that the iPhone XR will take the biggest blow, with Apple cutting orders of around 2.5 million. unit. Ming-Chi Kuo also cut its iPhone sales estimate for the first quarter by 20 percent. Kuo predicts sales in the range of 38-42 million (down from 50 million in the last quarter for 2018).
The Wall Street Journal first reported last month that Apple had cut iPhone orders because of difficulties predicting demand with a three-tier line. Apple suppliers also cut expectations, possibly because of a reduction in Apple orders.
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