Apple shares drop on more warnings from iPhone supply chain

Yolanda Curtis
April 26, 2018

iPhone X sales doubled those of the iPhone 8 and iPhone 8 Plus combined in the fourth quarter of 2017, pushing Apple to set new records.

While there were rumors that the new iPhone SE 2 might also come with dual cameras and edge-to-edge display like the iPhone X, latest reports don't hint at any of these.

The Geneva-based group said it expected second-quarter revenues to increase by about 1.5 percent, plus or minus 3.5 percentage points, from the previous quarter. For the same period this year, Apple gave a sales forecast of US$60 billion to US$62 billion, representing a 17 percent year-on-year growth.

Concerns ahead of Apple's quarterly report next Tuesday have shaved 9 per cent from its stock price in the past five sessions, erasing $80 billion of its stock market value. He said that Apple wouldn't be producing any new iPhone X as it will be canceled soon.

"We believe the LCD model is being positioned to be priced more aggressively - in the $799 range" suggesting it would help push iPhone 6 and iPhone 6s users to upgrade to the "iPhone 8S", apparently also known as the "Jaguar" model. He later predicted in March that Apple could cease the production of the iPhone X mid-year.

Not yet announced a smartphone iPhone X Plus, the debut of which is scheduled for autumn this year, appeared today at a semi-official advertising poster. Mirbaud Securities has been tracking TSMC's inventory for about a decade. Neil Campling, co-head at global banking and finance group Mirabaud Securities revealed the details.

According to him, Apple sorely overestimated the demand, which meant all the units they produced will likely be the ones they will ever need.

The most probable reason he says, "the simple problem with the iPhone X is that it is too expensive".

Campling said that the iPhone suppliers TSMC and AMS are taking a huge hit because of the sales dive.

Do you think the Apple A12 CPU will be built on TSMC's 7nm manufacturing process? That could affect TSMC orders in the short term. The Company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings.

The imminent end of life for iPhone X is leading to a deeper trough than the most cautious of estimates.

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