Apple shares fell after Goldman Sachs analysts lowered forecasts for iPhone sales and group sales for fiscal year 2019.
Goldman Sachs cut overall iPhone sales by 6%, and one of Apple 's major suppliers, Lumentum Holdings (LITE), cut its sales estimates by 3.5% after posting earnings warnings on Monday. The market value of Apple, which lifted the Dow Jones Industrial Average index to 500 points, fell 5%. Goldman Sachs lowered Apple's stock price target from $ 222 to $ 209 a share.
Goldman analysts say, "We are worried that the final demand for the new iPhone model is getting worse." Apple has already considered some weaknesses in the guidelines, but the timing and magnitude of the LITE decline is gradually worsening demand data. I think."
Apple shares were down $ 0.23 to $ 193.77 on Tuesday. The stock was listed on a gentle basis.
"We recently received a request for one of our largest industry and consumer customers for a 3D sensing laser diode and requested a significant reduction in shipments for the second quarter of the order that was originally scheduled for delivery in the second quarter. low. "With our mass production, years of experience, hundreds of millions of devices, and proven technology to deliver new products and customer func- tions, we are confident that we are at the forefront of the 3D-sensing laser diode market."
Another Apple vendor, Japan Display (LCD screen maker), reported an operating loss of 4.7 billion yen ($ 623 million) in the fourth quarter for the six months ended September, lowering its annual sales growth and margin forecasts .
Last week, major Taiwan suppliers reported that Foxconn and Pegatron were being asked to discontinue their new production capacity until they gained clarity about Apple's iPhone XR demand.
This report means investors are no longer able to calculate average selling prices because Apple does not provide detailed figures for individual product sales such as iPhones and Mac computers. Profitability.
The decision to abolish the guidelines, as well as forecasts for the December quarter revenues of about $ 91 billion for the three months ended December, showed a much better-than-expected $ 2.91 earnings per share in the September quarter. On Friday, the biggest single-day decline since 2014, the company sent shares down more than 6.3 percent, to $ 62.9 billion.
"The lack of transparency is disappointing and investors will limit the visibility of the company," said Tim Long, BMO Capital Markets. "(The average selling price is going up, but at some point it will be a plateau."
Apple released the 6.1-inch LCD version of XR in early September. It is a low-cost product from XS Max, an expensive iPhone XS priced at $ 1,000 and $ 1,100, respectively.
"While the new line-up is not expected to drive unit output growth to the level seen during the iPhone's six-year cycle, due to the mature smartphone market, sales will be very good as average selling prices continue to rise, And the premium buyer is likely to choose the new iPhone XS Max ($ 1,450 for the top model), "analysts said.
Apple said it has moved 46.9 million iPhones during the three months ended September. It was praised for an average selling price much higher than anticipated at $ 793, which is almost the same as analysts' expectations. Apple has exceeded the consensus of $ 751. Up 28.3 percent from the same period last year.
Service revenue, including App Store, Apple Music, iCloud Storage and Apple Pay sales, was $ 10 billion, up 27 percent, but down from 31 percent in the June quarter. This reduces the so-called base installation, which can be affected as iPhone sales progress slowly.