Apple, HTC rumored to cut back on handset chipset orders in Q4
A new report claims handset vendors, including Apple and HTC, will reduce orders for smartphone chipsets in the fourth quarter of this year because of worries about the world economy.
Sources at Taiwan-based chipset makers relayed the information to industry publication DigiTimes.
"Some handset solution suppliers have indicated that a number of handset vendors, including Apple and HTC, have scaled down their chipset orders for the fourth quarter as compared with the third on concerns of the global economy," the report noted.
Most smartphone vendors will reportedly reach their shipment targets for the third quarter, which ends in September, but they have begun reducing orders for parts and components in case of a "possible impact from changing economic conditions."
The international economy has been unstable as of late. Earlier this month, the Standard & Poor's agency caused a stir when it downgraded debt from the U.S. government from AAA to AA (plus) for the first time in history. investors also fear consequences from debt issues in Europe.
It should also be noted that DigiTimes has a mixed track record with its predictions. The publication claims to have well-placed sources among the major Asian suppliers and manufacturers, but its more speculative reports have at times proven inaccurate.
Earlier this year, HTC raised its internal shipment target for 2011 to 70 million units, up from 50 million units. But, sources familiar with HTC's roadmap said the handset maker recently lowered its internal estimate to 50-60 million units.
Meanwhile, sources among Apple's suppliers claim that the iPhone maker has also "scaled down its orders for handset parts and components to be shipped at the end of third quarter."
Of course, Apple could simply be drawing down orders of the iPhone 4 ahead of the "future product transition" that executives have warned would take place during the September quarter. During a quarterly earnings call last month, Chief Financial Officer Peter Oppenheimer explained the transition as a partial reason for the company's guidance of a 12 percent revenue decline.
The next-generation iPhone has been alternately reported to arrive in September and October. Apple has kept its cards close to its chest ahread of the expected release, unlike last year which saw an unprecedented leak.
Alleged iPhone 5 cases circulating in China appear to depict a device with curved sides. The smartphone is also expected to sport the A5 processor and an 8-megapixel camera.
Apple has been on a tear with the iPhone, selling a record 20.34 million units in the June quarter. Revenue from the device jumped up to $13.3 billion, almost half of the company's total revenue, during the period.
Sources at Taiwan-based chipset makers relayed the information to industry publication DigiTimes.
"Some handset solution suppliers have indicated that a number of handset vendors, including Apple and HTC, have scaled down their chipset orders for the fourth quarter as compared with the third on concerns of the global economy," the report noted.
Most smartphone vendors will reportedly reach their shipment targets for the third quarter, which ends in September, but they have begun reducing orders for parts and components in case of a "possible impact from changing economic conditions."
The international economy has been unstable as of late. Earlier this month, the Standard & Poor's agency caused a stir when it downgraded debt from the U.S. government from AAA to AA (plus) for the first time in history. investors also fear consequences from debt issues in Europe.
It should also be noted that DigiTimes has a mixed track record with its predictions. The publication claims to have well-placed sources among the major Asian suppliers and manufacturers, but its more speculative reports have at times proven inaccurate.
Earlier this year, HTC raised its internal shipment target for 2011 to 70 million units, up from 50 million units. But, sources familiar with HTC's roadmap said the handset maker recently lowered its internal estimate to 50-60 million units.
Meanwhile, sources among Apple's suppliers claim that the iPhone maker has also "scaled down its orders for handset parts and components to be shipped at the end of third quarter."
Of course, Apple could simply be drawing down orders of the iPhone 4 ahead of the "future product transition" that executives have warned would take place during the September quarter. During a quarterly earnings call last month, Chief Financial Officer Peter Oppenheimer explained the transition as a partial reason for the company's guidance of a 12 percent revenue decline.
The next-generation iPhone has been alternately reported to arrive in September and October. Apple has kept its cards close to its chest ahread of the expected release, unlike last year which saw an unprecedented leak.
Alleged iPhone 5 cases circulating in China appear to depict a device with curved sides. The smartphone is also expected to sport the A5 processor and an 8-megapixel camera.
Apple has been on a tear with the iPhone, selling a record 20.34 million units in the June quarter. Revenue from the device jumped up to $13.3 billion, almost half of the company's total revenue, during the period.
Comments
The international economy has been unstable as of late. Earlier this month, the Standard & Poor's agency caused a stir when it downgraded debt from the U.S. government from AAA to AA (plus) for the first time in history. investors also fear consequences from debt issues in Europe.
[ View this article at AppleInsider.com ]
I've got no fear in the us. Our cities may look like third world countries and out kids might not be likely to graduate high school, but thankfully we have plenty of bright people from other countries in our universities cranking out new products, ideas etc. As long astop notch universities are still in US I don't think its wise to doubt the credit rating.
Sorry back to the topic, I think that if iPhone4 is to be a $99 phone as iPhone 3gS has become, perhaps they should at least keep production steady, so that there is enough backlog to sell those puppies for a whole year.
The richest company in the world knows something.
Hold on to your hats... things are going to get bad.
sell sell sell
The richest company in the world knows something.
Hold on to your hats... things are going to get bad.
sell sell sell
The richest company in the world? Who would that be? Hopefully you aren't confusing Apple's market value with something they can actually use?
Ignore Digitimes reports.
Agreed. They're not a credible news source. I don't know why tech blogs still regurgitate its nonsense.
I for one don't see a compelling reason to upgrade yet. Wallet, 4G etc is not too appealing right now. 4G will likely cost more and eat battery faster. iOS 5 sems to run fine on iP4.
Those with 3Gs models, and older android sets might be more inclined to upgrade
Hopefully you aren't confusing Apple's market value with something they can actually use?
Don't follow what you are implying. That market value can't be monetized? Really?
As we saw in the last recession (2007-2009), Apple is largely immune to global economic downturns. This was the period where ALL of Apple's major segments grew, and grew dramatically, including the mac, iPhone, and iPod.
I sincerely doubt that Apple would reduce Q4 supplies because of global economic fears, especially when historically their biggest problem for the 2 or so quarters following a phone release are supply constraints.
What is possible, and makes sense, is the idea suggested by AI. That Apple has reduced chipset orders for the cheaper secondary phone they would be selling (i.e. the iPhone4 after the iPhone 5 is released). The secondary phone is far more likely to be affected by the global economy (because the only reason anyone is going for it instead of the iPhone 5 is because they are price conscious).
This guy is an idiot
Apple is rolling out new iphone - of course they would cut parts order pending launch - world wide including China!!!
A new report claims handset vendors, including Apple and HTC, will reduce orders for smartphone chipsets in the fourth quarter of this year because of worries about the world economy.
Sources at Taiwan-based chipset makers relayed the information to industry publication DigiTimes.
"Some handset solution suppliers have indicated that a number of handset vendors, including Apple and HTC, have scaled down their chipset orders for the fourth quarter as compared with the third on concerns of the global economy," the report noted.
Most smartphone vendors will reportedly reach their shipment targets for the third quarter, which ends in September, but they have begun reducing orders for parts and components in case of a "possible impact from changing economic conditions."
The international economy has been unstable as of late. Earlier this month, the Standard & Poor's agency caused a stir when it downgraded debt from the U.S. government from AAA to AA (plus) for the first time in history. investors also fear consequences from debt issues in Europe.
It should also be noted that DigiTimes has a mixed track record with its predictions. The publication claims to have well-placed sources among the major Asian suppliers and manufacturers, but its more speculative reports have at times proven inaccurate.
Earlier this year, HTC raised its internal shipment target for 2011 to 70 million units, up from 50 million units. But, sources familiar with HTC's roadmap said the handset maker recently lowered its internal estimate to 50-60 million units.
Meanwhile, sources among Apple's suppliers claim that the iPhone maker has also "scaled down its orders for handset parts and components to be shipped at the end of third quarter."
Of course, Apple could simply be drawing down orders of the iPhone 4 ahead of the "future product transition" that executives have warned would take place during the September quarter. During a quarterly earnings call last month, Chief Financial Officer Peter Oppenheimer explained the transition as a partial reason for the company's guidance of a 12 percent revenue decline.
The next-generation iPhone has been alternately reported to arrive in September and October. Apple has kept its cards close to its chest ahread of the expected release, unlike last year which saw an unprecedented leak.
Alleged iPhone 5 cases circulating in China appear to depict a device with curved sides. The smartphone is also expected to sport the A5 processor and an 8-megapixel camera.
Apple has been on a tear with the iPhone, selling a record 20.34 million units in the June quarter. Revenue from the device jumped up to $13.3 billion, almost half of the company's total revenue, during the period.
[ View this article at AppleInsider.com ]
I don't believe this for a second.
Yeah Apple cutting back when they can't even sell enough iPads and iPhones as the rest of the tech world self-implodes. Not gonna happen.
The richest company in the world knows something.
Hold on to your hats... things are going to get bad.
sell sell sell
Like crystal meth, people will find a way to have the latest smart phone.
I would just like to juxtapose the two posts above.
Don't follow what you are implying. That market value can't be monetized? Really?
Not by Apple it can't be, they don't own it, the shareholders do.
Ignore Digitimes reports.
Why would we do that. I mean they know everything. Heck I heard they just hired Shaw Wu and he's never wrong.
Not by Apple it can't be, they don't own it, the shareholders do.
I always get confused in this area. As an expert please explain GE to me in this context. Half a trillion in debt last time I checked. Do I understand then that GE has this level of debt some other way? I assume they spent this money already, but without utilizing share value? How did they do it?
The Republicans are will to do anything to destroy the economy to try and make Obama look bad ( or look worse depending on your political slant). The Democrats are doing a pretty good job of trying to destroy the economy with run away spending. I do not see either side willing to do anything to actually help the economy.... Political ideology is taking precedent over common sense these days...
In 2008 we still had enough resources to saved the crooked bankers and try to stimulate the economy with infrastructure spending..... There is nothing left to try and help out this go round.... It will not be as quick of a fall, but I think the bottom will be deeper and the rebound much more flat ( hard to believe... )
I think pulling back on production is a very wise move at this moment. Apple has little to risk as Apple fans are so diehard that they will wait if demand greatly outstrips supply anyway...
The Republicans are will to do anything to destroy the economy to try and make Obama look bad ( or look worse depending on your political slant). The Democrats are doing a pretty good job of trying to destroy the economy with run away spending. I do not see either side willing to do anything to actually help the economy.... Political ideology is taking precedent over common sense these days...
I just want to point out that BOTH parties have increased spending significantly.
If you look at the last 50 years, spending has increased faster when the Republicans were in control than when the Democrats were in control (the difference is small, but significant). The Democrats tend to spend more on social programs and the Republicans on defense - but both sides have a long history of spending more than the government brings in. The Republicans, though, have done a better job of painting the other side as over-spenders (largely because they consider social spending as optional but defense spending as a necessity).
It turns out when you look at statistics, that the LOWEST growth rate is when one party controls the White House and the other controls Congress. But government grows even in that environment.
BOTH parties need to take the blame for their share of the problem and do something about it.