Apple Inc. Shares (AAPL) fell on Tuesday after analysts Goldman Sachs downgraded sales of iPhone sales and sold the 2019 fiscal year tech group.
Goldman has downsized the iPhone's total sales unit for the whole year by 6 percent and downgraded its revenue estimate by 3.5 percent after one of the key suppliers of Lumentum Holdings (LITE) announced Monday's revenue management announcement that ended almost a third of the market share of the manufacturer and triggered a drop of 5% for Apple, which brought the Dow Jones Industrial Average to 500 pixels. Goldman also lowered its target at $ 209 for $ 222 per share.
"We are concerned that the ultimate demand for new iPhone models is worsening," Goldman analysts wrote. "Although Apple may have been thinking about some weaknesses in the guidelines, we believe that the time and size of the LITE decrease suggests … increased demand data."
Apple stocks fell by 0.2% to $ 193.77 in trading on Tuesday. Shares have been trading modestly earlier in the session.
"We recently received a request from one of our largest industrial and consumer customers for laser diodes for 3D sensors to significantly reduce their deliveries during our second fiscal quarter for pre-order orders originally scheduled for delivery during the quarter," said the CEO Alan Lowe. "With our proven ability to deliver large volumes, years of experience, hundreds of millions of on-the-field devices and new manufacturing and customer flow, we remain confident in our leading position on the new market for laser diodes for 3D sensors."
Earlier Monday, another Apple supplier, Japan Display, which makes LCD displays, slams overall sales growth and the March margin after it has announced its six consecutive quarterly loss of $ 4.7 billion ($ 413 million) for three months ending in September .
Last week, Apple shares hit the Nikkei Business Diary report, which said Taiwan's key suppliers claim Foxconn and Pegatron were asked to shut down new production capacity until they see a clearer demand for Apple's iPhone XR.
The reports followed Apple's decision to no longer provide detailed sales numbers for specific products such as iPhones and Macs, which means that investors will no longer be able to calculate their average selling price, the key measure used to estimate their profitability.
The decision to reject these guidelines, as well as sales forecasts in December at $ 91 billion in the three month period ended December 2008, overshadowed more than expected in the fourth quarter of this year, which saw a larger profit of 2.91 dollars per share and group revenue of $ 62.9 billion, and sent shares fell more than 6.3 percent on Friday, the biggest single drop since 2014.
"The lack of transparency is disappointing and likely will limit the visibility of investors in the company," said Tim Long from BMO Capital Markets. "Our position remains that units can not grow to go even further, and while (average selling prices) continue to grow, at some point the platoon will."
At the beginning of September, Apple launched a 6.1-inch LCD version of its iPod, XR, at about $ 750 as an alternative to the more expensive XS XS, XS Max, starting at $ 1,000 and $ 1,100.
"Although we do not expect the new line to drive a unique growth rate on the levels seen during the iPhone 6 cycle due to the mature smartphone market, revenues should still see a very healthy jump due to continued uptick at average sales prices, with middle-range iPhone users likely upgrade to the XR and premium customers who probably opt for the new iPhone XS Max (the highest models cost $ 1,450), "said Trefis analysts.
Apple has taken over 46.9 million iPhones over the three months that ended in September, which was largely in line with analysts' forecasts, but fell far more than the expected $ 793 average sale price, leading to a 751th consensus dollars rose by 28.3% over the same period last year.
Service revenue, including the App Store, Apple Music, iCloud Storage and Apple Pay, rose 27 percent to $ 10 billion, but slowed down by 31 percent in the June quarter, affecting slower sales of iPhones, reducing the so-called . installed base.