Threatening Apple’s cash cow, iPhone sales are set to decline by 5% from its fiscal year 2018 to fiscal year 2019. That’s according to a new note by Guggenheim analyst Robert Cihra, which sent Apple’s stock sinking on Wednesday.
“We see growing risk of even softer iPhone unit demand, with downside in China, India and other emerging markets, where Apple may need to start considering lower price points,” Cihra warned, while downgrading Apple’s stock to “neutral.”
Among other issues, Cihra said Apple is having a harder time selling its priciest iPhones. Its historically average selling price will no longer be enough to offset sagging sales.
Both Goldman and UBS suggested on Wednesday that Apple would likely sell fewer iPhones than previously expected.
“We are concerned that end demand for new iPhone models is deteriorating,” Goldman said in the note.
The unflattering forecasts come just weeks after Apple reported fiscal first-quarter guidance failed to meet analysts’ expectations.
For the quarter ending in December, Apple had forecast revenue between $89 billion and $93 billion, which fell short of what Wall Street was anticipating.
CEO Tim Cook blamed poor outlook on slowing sales in emerging markets and foreign exchange costs.
Adding to analysts’ fears, Apple said earlier this month it would no longer report device sales.
Apple said such figures no longer fairly reflect its financial health, as more customers buy bundled products, but some analysts suggested the company might have something to hide.