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Ming-Chi Kuo Just Cut Apple’s 2019 Estimates

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Apple stock has been plunging

Apple (AAPL) stock has tanked nearly 30% in over two months, as investors are anxious about its core business. Early supply chain reports have already suggested weak demand for Apple’s new flagships.

As we’ve discussed before, Apple’s holiday quarter revenue is bound to be flattish, as its unit sales are flat or negative. Lately, several reports have suggested that iPhones have been met with weak demand. Apple will not be revealing its unit sales for this quarter.

Now, TF International Securities analyst Ming-Chi Kuo, one of the tech giant’s most influential analysts, has forecast mild iPhone sales for the December quarter. Kuo expects especially poor sales for the XS and XR iPhones.

The XR was expected to be a success given its low $749 price tag. Kuo now expects Apple to ship only 190 million iPhones in 2019, while Wall Street had been expecting 212 million shipments.

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Apple’s unit growth could continue to be sluggish

Apple has been seeing sluggish unit sales for a while now. The overall global smartphone market has also seen a slowdown. Additionally, not only are people balking at higher iPhone prices, but they’ve also been holding onto their iPhones for longer.

Going forward, Apple could see its iPhone unit sales accelerate only after a leap in innovation. Consumers are looking forward to 5G technology-powered smartphones. Apple’s 5G smartphone is expected to launch in two years.

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