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Rosenblatt: Apple could cut 4M iPhone units

Published 12/20/2018, 03:29 PM
© Reuters.  Rosenblatt: Apple could cut 4M iPhone units
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  • Rosenblatt thinks Apple (AAPL -2.2%) could cut iPhone production by another 4M units for the March quarter due to China weakness related to the Huawei CFO arrest.
  • Analyst Jun Zhang notes that many Chinese companies showed support for Huawei by subsidizing employees who purchased devices from the company instead of iPhones.
  • Zhang thinks the iPhone XR will take the highest cuts at about 2.5M with the XS dropping 1M and the XS Max trimming 500K units.
  • Zhang warns investors to be cautious on Skyworks (SWKS -0.7%), Taiwan Semi (TSM -0.6%), Qorvo (QRVO +0.5%), Cirrus (CRUS +0.2%), and Knowles (KN +0.1%).
  • Rosenblatt is positive on Viavi (VIAV -0.4%), Lumentum (LITE -1.8%), and Sony (SNE -0.5%) on Android adoption of 3D sensing next year.
  • Source: Bloomberg First Word.
  • Now read: What Are The Recent Apple Supplier Warnings Telling Us About Apple


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