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Apple iPhone Production Forecast For First Quarter Slashed By Citi


Apple iPhone Production Forecast For First Quarter Slashed By Citi
Apple is facing a very serious and critical slowdown in sale of its iPhones for the first time since the original Apple iPhone was launched by the late Steve Jobs for the world to see.
The slowdown in sale has forced Apple to drop the price of both the iPhone XR and the iPhone XS and Apple consumers the world over can trade their older iPhone models for the two 2018 iPhone models and thereby be able to save some decent money on the purchase of the latest versions of the iPhones.
As if to add insult to injury, Citi Research brought in some bad news for the US tech giant as it significantly lowered its outlook for iPhone production in the first quarter of next year even as the company is trying to negotiate the slowing demand for its devices.
According to media reports quoting analysts at Citi, the bank has reportedly brought down by 50 per cent the estimate for the production of iPhone XS Max devices in the first quarter of 2019 to 4 million compared to what was the original expectation of the production of Apple phones which was set at production target of 8 million iPhone XS Max devices. With a starting price of $1,099, the iPhone XS Max is the latest and the most expensive device being provided by Apple.
The forecast for the production of the iPhone XS model was also brought down by Citi from 6 million to 5 million. The iPhone XS model is a slightly cheaper smartphone priced at $999. The production numbers of the more affordable iPhone XR models priced at $749 was alos cut down from 14 million to 11 million.
Analysts have accorded the softening of demand for iPhones to the overall saturation of the smartphone market.  The lower sale has however been offset by the higher price tags. $793 was the average selling price for a iPhone during the fourth quarter which was more than expectations of the market.
Apple had however offered dismal guidance for the current quarter covering the holiday season. During the ever-important month of December, the projected sales fell short of analyst expectations.
But Citi Research is not the only firm that is anticipating a fall in the production of iPhone production during the fiscal second quarter. Same opinion was expressed by Rosenblatt analyst Jun Zhang in a note for his clients and warned them about a possible lowering of iPhone production for the fiscal Q2 by 4 million handsets during the same three month period. However, according to expectations from Rosenblatt's Zhang, the majority of the production cut would be for the iPhone XR which was not the case for the prediction by Citi Research.