Citigroup's trio of Apple analysts have a very negative note for investors this morning.
They say demand for Apple's two main product categories — the iPhone and the iPad — has "softened."
They cut their estimates for iPhone unit sales this quarter. For the current March quarter, they are estimating 34 million units sold, down from the previous estimate of 35 million units. For the June quarter they are calling for 25 million units sold, which is well below the consensus of 32 million units.
For the next two quarters Citi is at 59 million units versus 69 million for the Street.
As for the iPad, they say, "10” tablet sales are in decline in mature markets (sales of 10” iPad in US & Japan declined 10.2% y/y in 4Q12), indicative of product maturation."
They say the iPad Mini is likely eating into sales of the bigger iPad, but sales of the iPad Mini are expected to flatten. They have cut their iPad estimate for this quarter to 18 million units, which is below the consensus of 19 million from the Street.
As for the low-cost iPhone that a lot of people are anticipating, the Citi analysts say they "find limited evidence" of that kind of iPhone right now.
Business Insider commenter, and prolific tweeter Sammy The Walrus IV summed up the Citi note best on Twitter saying, "Citi basically thinks demand for Apple products has reached a peak. Incremental products will be a snooze. No new product categories."