Supply chain suggests iPhone orders will rebound this summer ahead of 'iPhone 7' launch
Forecast trends in the demand for flexible PCB (printed circuit board) parts for iPhones indicate that while iPhone production may be down in the first half of the year, it will likely rebound in the second half as work begins on Apple's next-generation models.
FPCB suppliers are expecting sales to pick up in June or July as other companies in the iPhone supply chain work to produce components for the new devices, DigiTimes supply chain sources said on Wednesday. In the meantime, however, FPCB shipments are predicted to decline year-over-year.
The sources noted that iPhones have become increasingly depenedent on FPCBs because of larger displays, 3D Touch, and Apple's drive to make devices increasingly thin. Suppliers are believed to include Flexium Interconnect and Zhen Ding Technology Holding.
In its most recent results call, Apple guided to its first-ever iPhone sales decline for the March quarter, following relatively modest growth in the previous quarter. CEO Tim Cook attributed the situation to blockbuster results last year, combined with current global economic problems.
Some analysts have expressed concerns, however, because the iPhone is Apple's primary revenue generator, and the company has traditionally enjoyed substantial growth with it -- sometimes in double-digit percentages.
FPCB suppliers are expecting sales to pick up in June or July as other companies in the iPhone supply chain work to produce components for the new devices, DigiTimes supply chain sources said on Wednesday. In the meantime, however, FPCB shipments are predicted to decline year-over-year.
The sources noted that iPhones have become increasingly depenedent on FPCBs because of larger displays, 3D Touch, and Apple's drive to make devices increasingly thin. Suppliers are believed to include Flexium Interconnect and Zhen Ding Technology Holding.
In its most recent results call, Apple guided to its first-ever iPhone sales decline for the March quarter, following relatively modest growth in the previous quarter. CEO Tim Cook attributed the situation to blockbuster results last year, combined with current global economic problems.
Some analysts have expressed concerns, however, because the iPhone is Apple's primary revenue generator, and the company has traditionally enjoyed substantial growth with it -- sometimes in double-digit percentages.
Comments
I expect that Wall Street would have liked to get a better pump out of GOOG than they did; looks like a lot of profit taking at a minimum.
I'm fine that it's Alphabet's turn in the barrel.
Lather, rinse, repeat.
Tim Cook was right as he runs the company and is a master of these things - Supply Chain is complex and don't try to make something out of pieces of data. I hope there are lot more such stories, even if they might be inaccurate. Because, either side of the rumor does not give correct information.
P.S. I agree with your thesis.
Apple will do well just to maintain flat growth, even slight negative growth would be fine, for the foreseeable future, but I would like them to maintain their margins and continue to delight us with new products and services. This is the rainy day that will make that cash worth having; lots of M&A opportunities may await.
I usually enjoy and appreciate your posts, and I'm glad you're still posting, but the Tim bashing was beyond ridiculous. There's very little that he could've done to change the cycle of manipulation. Even if he could've had a slight impact, the amount of groveling that he would've had to do to the produce-nothing a holes on wall street is beneath him, and certainly beneath Apple.
*It was interesting to see that AAPL got a little bump after Eddie Cue spoke at a WSJ event; my guess is that it's not typical for Apple to 'play ball' with the powers that be.
OK last time they where right, so this time they can be too. The only complain I got over this rumor is that the previous ones speak about a quarter of softness due to stock adjustments in the channel. This is speaking about softness for two quarters.
Right, but there was certain truth in the previous ones. That said, only if it develops a cascade of following ones would be a smoke with fire, otherwise, and coming from Digitizes, most to credible.
No, it will end up being mine, I will die before selling my shares if Apple want mine, they will be the last in the market, I will be very happy in my new Cupertino hula hop styled home, and my home theatre is very beautiful one. I will put a farm in the rounded inner garden and a Heli pod. And those thousands of garage spaces are a dream come true for a car guy like me. I could store all the crap on wheels I love. And believe me, every car guy has its own weird secret love on wheels.