Citi: ‘Softer demand for iPhone 5′ and iPad mini cannibalization hurting Apple growth

Brad Reed

Apple Growth Analysis
Apple Growth Analysis

Apple (AAPL) may not be “doomed,” but it certainly is dealing with some of the toughest competition that we’ve seen in a long time. CNET points us to a new note written by Citi analyst Glen Yeung claiming that demand for the iPhone 5 has softened and that the iPad mini is cannibalizing sales of the 9.7-inch iPad, thus limiting Apple’s ability to sell larger tablets. As a result of this, Yeung has cut his iPhone sales estimate to 34 million from 35 million this quarter, while also slashing his total June-quarter iPad sales estimate from 19.6 million to 19 million.

[More from BGR: Leaked Galaxy S IV screenshots reveal several new features]

Yeung also claims that “despite much speculation amongst investors and third-party research,” he has seen no evidence that Apple is preparing to launch a cheaper version of the iPhone anytime this year. Yeung does expect Apple to launch the iPhone 5S this summer and to release a larger “iPhablet” in late 2013 or early 2014, however, and he says that the second-generation iPad mini will likely launch this fall.

This article was originally published on