Kuo estimates that the fall in sales of the iphone will begin to reduce "soon"

Earlier this year, Apple downgraded its revenue forecasts for the first quarter of fiscal year 2019 (last calendar quarter of 2018) by as much as $ 9 billion due to lower-than-expected iPhone sales, especially in China. However, popular analyst Ming-Chi Kuo sees a sign change in regards to this slowdown in sales of the Cupertino company's flagship.

IPhone sales will improve

In his latest research note with TF International Securities, which we have been able to learn about thanks to the access obtained by MacRumors, Kuo believes that "the share prices of Apple and most iPhone providers are generally priced negatively."

Our report released on December 14, 2018 was the first to lower the estimate for 2019 iPhone shipments to 190 million units or less; The current market consensus on 2019 iPhone shipments (160-180 million units) is much lower than our estimate, and we believe that the share prices of Apple and most iPhone providers are generally priced negatively.

We maintain our forecast of 188–192 million units for iPhone shipments in 2019. We believe downside risks to stock prices for the Apple and iPhone supply chain are limited in the near term, given that shipments of iPhone in 2Q19 will probably be better than the market consensus.

Kuo slightly reduced its estimate for iPhone sales in the first quarter of 2019 from 38-42 million units to 36-38 million units because "demand for new models in China and emerging markets is less than expected, " but believes that the decline will begin to recover from the second quarter.

Specifically, he estimates that iPhone shipments in the second quarter of 2019 will reach 34–37 million units, a figure slightly above the market consensus of 30–35 million units. Still, this would mean a 14% year-over-year drop, which is, however, much less than the estimated 29 percent drop in the first quarter.

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