“Taiwan’s Foxconn posted a weaker than expected rise in quarterly profit amid warning signs from key customer Apple Inc and its global suppliers that demand for iPhones could be softening,” Reuters reports. “Foxconn, formally known as Hon Hai Precision Industry Co Ltd, reported net profit of T$24.88 billion ($805.52 million) for the third quarter on Tuesday, 12 percent short of analyst expectations.”
“While this was the biggest quarterly profit the company has posted this year and came in 18 percent above the year-earlier results, it was below a mean estimate of T$28.26 billion ($916.85 million) from nine analysts, according to I/B/E/S data from Refinitiv,” Reuters reports. “Apple warned earlier this month that holiday sales would miss Wall Street expectations due to weakness in emerging markets including India and foreign-exchange costs.”
“Shares in Foxconn and other Asian suppliers and assemblers for Apple fell on Tuesday after several component makers warned of weaker than expected results, leading some market watchers to call the peak for iPhones in several key markets,” Reuters reports. “Foxconn is a key assembler of the iPhone XR model, according to analysts, the cheapest of this year’s new launches and a model that is likely seeing very little traction with customers.”
Read more in the full article here.
MacDailyNews Take: Again, if iPhone XR rally is “seeing very little traction with customers” – Big IF – then demand for the other, higher-priced X-class iPhones is likely better than expected.
If there actually is an issue with iPhone XR sales — and the jury is still way out on that one — that could be a good thing for Apple as it could mean that when spending over $750 on an iPhone, more people than ever say to themselves, “Well, I might as well get the very best one available,” and buy the iPhone Xs Max over iPhone XR. This would positively impact Apple’s iPhone ASP, of course. — MacDailyNews, November 9, 2018
Apple shares are being crushed again in the premarket, after getting absolutely b!tchslapped yesterday. Another wave of heavy selling appears ready to start in 13 minutes. No buyers around, only sellers.
Nice job Pipeline.
Blaming Tim Cook for everything is getting so old and tired.
Rather blame the idiot analysts and the usual junk news reports that spook people.
Blank eyed, knuckle dragging, mouth breathing troglodyte fan boys defending a brain dead CEO is getting old and tired.
Resorting to juvenile insults merely reflects back on yourself.
Insults usually reflect the condition of the insulter.
Are you merely old and tired?
If you are so frigging smart, then why do you care about the price of Apple stock? A genius like you would have predicted the peak, sold your shares, and/or traded in options betting on the drop.
The price of Apple stock really doesn’t affect the company’s day-to-day operations at all. Unless Apple plans to issue new shares to raise cash for expansion (lol) or plans to use Apple shares as part of an acquisition strategy, short term price fluctuations have no real effect.
I Tink that you must own some AAPL and are upset about the recent drop.
how does 18% increase in profit over last year translate to ‘weakening iPhone sales’ ?
to manipulate the market or get click bait articles reporters are stretching facts to fit a Apple doomed narrative.
A few weeks ago Apple posted 41% increase in earnings with a slight increase in units despite Xr not launched yet. So even without their expected big seller budget model the units were still high and earnings spectacular
yet this narrative of collapsing iPhone sales.
I’ve criticized Tim Cook on other stuff like neglecting and poorly planning Mac models but this iPhone thing is silly. maybe the only thing we can criticize Cook for is losing focus and not broadening Apple’s base from iPhone (like maintaining Macs and creating new products) that allows this analyst manipulation
You are looking backwards. Analysts are looking forward.
But don’t trust the analysis if you think they are part of the big conspiracy. Apple lowered its profit forecast too.
apple never lowered its profit forecast
If I missed that announcement maybe you can give me a link
Apple gave guidance which showed an increase over last year
As for ‘conspiracy’ any long term investor has seen it for years with Nikkiei. Doug Kass etc.
Years ago a young Cramer who was a Hedge Fund manager even explained how to manipulate aapl:
listen to the whole thing but apple is mentioned around 3:30
note this is an old video and shows that people have been manipulating Apple forever
( as for people who think it’s all true go sell your aapl or don’t invest. I’ve seen the ups and downs)
This was the last quarter that ended month and a half ago idiots. This has nothing to do with the Apples new iPhones. Apple made a fantastic quarter and the new iPhones sells extremely well (11.11 Alibaba).