Best Apple Analyst In The Business Calls It Quits Ahead Of Apple's Q1 Earnings Release
Few people go out at the top of their game, but it appears that is exactly what Ming-Chi Kuo, KGI Securities analyst for all things Apple, is doing. Kuo has long had the most accurate Apple predictions that are based on sources that he has been able to procure in the Apple supply chain. Kuo is moving on from his post at KGI for another firm, and word is that Kuo will be covering non-Apple companies.
So, what gives? We know for iron-clad fact that Apple has been on a witch hunt in all aspects of the company and supply chain to find and silence leakers. Speculation is that Kuo's sources may have been found and the leaks plugged. Without sources, the analyst would no longer be able to hand out the Apple nuggets he has become known for and would presumably need to move onto greener fields where leaks are more prevalent.
Congratulations to Ming Chi-Kuo (the best analyst covering Apple) who is leaving KGI for another firm, and reportedly moving on to cover innovative non-Apple companies. https://t.co/m55yUVQSGG— Mark Gurman (@markgurman) April 30, 2018
Kuo was still at it last week when he announced that his sources indicated that Apple would likely ditch 3D Touch on the coming LCD iPhone model. That was his last day according to the China Times. It's hard to believe that without some catastrophic collapse of Kuo's network of sources the analyst would be moving on to cover other companies. Apple's leaked memo warning employees of dire consequences for leaking information specifically stated that some of the 29 leakers caught last year were in the supply chain.
Apple will be announcing Q1 2018 earnings today and investors aren’t too excited. Apple is expected to announce a plan that will see $100 to $150 billion returned to shareholders. While share buybacks and dividends are good for shareholders, the big item on the agenda will be iPhone sales. The iPhone X has been selling decently, but nowhere near the level that Apple reportedly predicted. The ramifications of soft sales have been felt throughout the Apple supply chain.
Samsung Display was particularly hard hit as Apple slashed production leaving a glut of OLEDs sitting unsold, and Apple has been pushing Samsung for lower OLED prices. Rumors have claimed that Apple will try and win back iPhone customers it alienated with the massively expensive iPhone X with a much cheaper 6.1-inch LCD iPhone selling for around $550. That rumor is ironically from departing Apple analyst Ming-Chi Kuo.