A new report from CNBC today shares that J.P. Morgan has cut its financial estimates for iPhone suppliers as demand for Apple’s smartphone is said to be declining.

The revised performance projections for Apple suppliers comes from J.P. Morgan analyst Bill Peterson as forecasts for iPhone sales for Apple’s Q2 and Q3 2018 (calendar Q1 and Q2) have been reduced.

Peterson noted the firm’s Asian supply chain analysts lowered their iPhone production forecasts to 55 million from 60 million for the March quarter and to 45 million from 50 million for the June quarter.

This echoes what we heard from Apple chip supplier TSMC last week as it said it expects high-end smartphone shipments to decrease this year.

While Apple is expected to post a record-breaking Q1 2018 as it details its performance on February 1, it may have an uphill battle to keep the momentum going throughout the year.

Even though the first half of 2018 may be slower for iPhone shipments, KGI’s Ming-Chi Kuo thinks that the real super cycle could happen later this year as Apple is expected to release three new models in September including a redesigned entry level flagship.

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