Forbes recently reported that Apple would suffer the most prominent quarterly revenue fall in a decade.
It’s been reported more times earlier this month that Apple has lowered its revenue guidance for the Q1 2019 fiscal year by up to $9 billion.
This move was due to the fewer iPhone upgrades than it was anticipated and this happened especially in the Greater China region.
This too shall pass
Apple analyst Ming-Chi Kuo, however, believes the “worst” will be “soon over” regaring this slowdown.
In his latest research notes with TF International Securities that have been obtained by the online publication MacRumors, the analyst said that the “share prices of Apple and most iPhone suppliers are generally priced in the negative.”
The official statement says that “Our report published on December 14, 2018, was the first to cut the estimation of 2019 iPhone shipments to 190mn units or less; the current market consensus on 2019 iPhone shipments (160–180mn units) is much lower than our estimation, and we believe the share prices of Apple and most iPhone suppliers are generally priced in the negative.”
More than that, “We maintain our forecast of 188–192mn units for 2019 iPhone shipments. We believe the downside risks of share prices for the Apple and iPhone supply chain are limited in the near term given that 2Q19 iPhone shipments will likely be better than the market consensus.”
Things will get better starting Q2 2019
Kuo cut his estimate for iPhone shipments in Q1 2019 from 38-42 million units to about 36-38 million units due to the fact that the demand for new models in China and emerging markets is much lower than planned.
He believes that the decline will start to ease in Q2 2019.
The analyst predicts that the iPhone shipments in Q2 2019 will be reaching around 34-37 million units which would still be 14% down on a year-over-year basis, but it would definitely look better compared to the 29% drop in Q1 2019.