Catcher, other Apple suppliers report setbacks rumored to be linked to iPhone 6s production cuts

Posted:
in iPhone
Several of Apple's Taiwan-based suppliers on Thursday announced financial setbacks, which could support claims of slowed production for the iPhone 6s and 6s Plus.




Touch panel maker TPK Holding, for instance, said that December revenues were about $235 million -- down 37.91 percent month-to-month, or 41.24 percent year-over-year, according to DigiTimes. Another touch tech provider, GIS, saw December revenues fall 31.91 percent monthly, even if they company actually grew in the quarter overall thanks to orders from other clients.

Catcher -- an iPhone chassis supplier -- said that in response to reduced orders by clients, it will cut its capital expenditures in 2016 to a level well below that of the past two years. Though chairman Hong Shui-shu gave an optimistic forecast as recently as November, he noted that clients have dramatically altered their forecasts within the last two weeks.

Hong commented that Catcher's performance will probably stay flat year-over-year in the first half of 2016, and may not resume growth until the second half, at which point the company may re-examine capex.

The new data appears to back a Nikkei claim that Apple is cutting iPhone 6s/6s Plus production by 30 percent in the current quarter, even if it should pick back up in the quarter following. The drop has been characterized as an "inventory adjustment" -- allowing dealers to sell through their current stock -- rather than a reflection of weak public demand.

Some have worried that the public might not have much interest in the iPhone 6s, since the device has relatively modest improvements over its predecessor, such as 3D Touch, a faster processor, and better camera technology.
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Comments

  • Reply 1 of 21
    More smoke to the fire. Its time for us Apple fans to realize that March and June quarter will show iPhone unit sales declines YoY. The only thing that can boost iPhone unit sales the next 2 quarters is if the 4 inch phone becomes a big hit and a ton of 4/5 series users were really waiting for it. 

    This news pretty much puts a lock that we see $80 share price in a few months or sooner. Could happen as soon as January 26th earnings call. If Apple guidance for revenue decline for March quarter things could get really ugly. I'd sell some shares now at $100 or gather some capital for the inevitable drop to $80. Long term I see Apple reach $125 by end of year and $140 if 7s shows unit growth. 


  • Reply 2 of 21
    lkrupplkrupp Posts: 7,162member
    More smoke to the fire. Its time for us Apple fans to realize that March and June quarter will show iPhone unit sales declines YoY. The only thing that can boost iPhone unit sales the next 2 quarters is if the 4 inch phone becomes a big hit and a ton of 4/5 series users were really waiting for it. 

    This news pretty much puts a lock that we see $80 share price in a few months or sooner. Could happen as soon as January 26th earnings call. If Apple guidance for revenue decline for March quarter things could get really ugly. I'd sell some shares now at $100 or gather some capital for the inevitable drop to $80. Long term I see Apple reach $125 by end of year and $140 if 7s shows unit growth. 



    Would you mind posting a copy of your FINRA license? Otherwise... bugger off.
    SpamSandwichlatifbppalomineStockJerkbestkeptsecret
  • Reply 3 of 21
    More smoke to the fire. Its time for us Apple fans to realize that March and June quarter will show iPhone unit sales declines YoY. The only thing that can boost iPhone unit sales the next 2 quarters is if the 4 inch phone becomes a big hit and a ton of 4/5 series users were really waiting for it. 

    This news pretty much puts a lock that we see $80 share price in a few months or sooner. Could happen as soon as January 26th earnings call. If Apple guidance for revenue decline for March quarter things could get really ugly. I'd sell some shares now at $100 or gather some capital for the inevitable drop to $80. Long term I see Apple reach $125 by end of year and $140 if 7s shows unit growth. 


    Do we know for a fact that these suppliers are being used for the 6S? If you're right I'm not what the iPhone 7 is going to bring to the party. Are people really not buying the 6S because aesthetically it looks just like the 6? Same thing with this rumored 4" phone. Are there that many people who didn't want a larger phone? And are they willing to buy an inferior phone (there's no indication this phone will have all the flagship features of the 6S) just because it's 4"? Again, if all this is true then IMO it means iPhone peaked with the 6 and Apple needs something else to pick up the slack.
  • Reply 4 of 21
    lkrupp said:
    More smoke to the fire. Its time for us Apple fans to realize that March and June quarter will show iPhone unit sales declines YoY. The only thing that can boost iPhone unit sales the next 2 quarters is if the 4 inch phone becomes a big hit and a ton of 4/5 series users were really waiting for it. 

    This news pretty much puts a lock that we see $80 share price in a few months or sooner. Could happen as soon as January 26th earnings call. If Apple guidance for revenue decline for March quarter things could get really ugly. I'd sell some shares now at $100 or gather some capital for the inevitable drop to $80. Long term I see Apple reach $125 by end of year and $140 if 7s shows unit growth. 



    Would you mind posting a copy of your FINRA license? Otherwise... bugger off.
    wow dude. Chill man. Just giving my opinion. I see $80 this year.  Just like 2014 when the stock dropped 40% from $700 to $385. 
  • Reply 5 of 21
    SpamSandwichSpamSandwich Posts: 31,198member
    More smoke to the fire. Its time for us Apple fans to realize that March and June quarter will show iPhone unit sales declines YoY. The only thing that can boost iPhone unit sales the next 2 quarters is if the 4 inch phone becomes a big hit and a ton of 4/5 series users were really waiting for it. 

    This news pretty much puts a lock that we see $80 share price in a few months or sooner. Could happen as soon as January 26th earnings call. If Apple guidance for revenue decline for March quarter things could get really ugly. I'd sell some shares now at $100 or gather some capital for the inevitable drop to $80. Long term I see Apple reach $125 by end of year and $140 if 7s shows unit growth. 


    You another Sog sock puppet?
    dasanman69
  • Reply 6 of 21
    fallenjtfallenjt Posts: 3,976member
    More smoke to the fire. Its time for us Apple fans to realize that March and June quarter will show iPhone unit sales declines YoY. The only thing that can boost iPhone unit sales the next 2 quarters is if the 4 inch phone becomes a big hit and a ton of 4/5 series users were really waiting for it. 

    This news pretty much puts a lock that we see $80 share price in a few months or sooner. Could happen as soon as January 26th earnings call. If Apple guidance for revenue decline for March quarter things could get really ugly. I'd sell some shares now at $100 or gather some capital for the inevitable drop to $80. Long term I see Apple reach $125 by end of year and $140 if 7s shows unit growth. 


    Stop fucking posting same comments in different threads. 
    latifbppalomine
  • Reply 7 of 21
    To sell more iPhones, Apple should bring:
    -new design with no bezels
    -more mAh battery capacity (not less) 
    -32GB minimal 
    -really new features like waterproof 
    -make front color like back (front black + back black, gold front + gold back...) 
    -compatibility like bluetooth transfer complete, explorer app as default, external adapter SD card by lightning connection with explorer option as default... 
  • Reply 8 of 21
    To sell more iPhones, Apple should bring:
    -new design with no bezels
    -more mAh battery capacity (not less) 
    -32GB minimal 
    -really new features like waterproof 
    -make front color like back (front black + back black, gold front + gold back...) 
    -compatibility like bluetooth transfer complete, explorer app as default, external adapter SD card by lightning connection with explorer option as default... 
    all nice ideas except external SD card. Those can cause alot of problems to performance.
  • Reply 9 of 21
    mac_128mac_128 Posts: 3,448member
    I'd say to the extent there's any truth to this rumor, and taken in the positive, that this more or less confirms the new 4" phone will be more of a premium model than the 5C. Given that there are commercial studies that show an 5S or smaller installed base of around 40% suggests that there may be a very large market waiting to upgrade their phones to a new 4", not including those 6 users who didn't like the experience and would be eager to drop back down to a 4" iPhone. All of these things would reduce 6S production. Then, the rumors the 7 might be moved up to June or July makes a little more sense, as it introduces brand new features the 6 doesn't have, but more importantly let's them sell the 6 and 6S for $449 and $549 respectively, drawing in millions of more low-end Android converts. Of course, if this rumor is true for reasons of lack of compelling new features, then it makes me wonder whether Apple can put off the removal of the 3.5mm jack rumor seems to be overwhelmingly suggesting, because this would likely be the wrong time to do it. Of course that's only if this rumor is true for that reason. On the other hand, they might remove it, but keep offering it on the Plus which has the room for it, giving customers a reason to upgrade to the premium flagship phone, and thus increase Apple's margins.
    canukstorm
  • Reply 10 of 21
    adrayvenadrayven Posts: 460member
    lkrupp said:

    Would you mind posting a copy of your FINRA license? Otherwise... bugger off.
    wow dude. Chill man. Just giving my opinion. I see $80 this year.  Just like 2014 when the stock dropped 40% from $700 to $385. 
    Your statement though doesn't make sense when compared to the record iPhone 6s sales reported this holiday. Every outlet reported record sales.. so how does this reflect anything but inventory adjustment? Target, Best Buy, Walmart have all reported massive Apple iPhone sales. Also, keep in mind, they don't say what they are producing for in what volumes. Apple has like 6-10 vendors per part, so a few complaining of drop-offs in production (3 so far) is a drop in the bucket. Then their is the source. DIGITIMES... The master of stock manipulation and lies.
    latifbpjes42palomineStockJerk
  • Reply 11 of 21
    It's time for us Apple fans to wake up and smell the DOOMED. This is the end of Apple's one trick pony. The Apple Watch has failed. Android is the future, if for no other reason than because I hate walled gardens, and I love specs.
    gatorguy
  • Reply 12 of 21
    To sell more iPhones, Apple should bring:
    -new design with no bezels
    -more mAh battery capacity (not less) 
    -32GB minimal 
    -really new features like waterproof 
    -make front color like back (front black + back black, gold front + gold back...) 
    -compatibility like bluetooth transfer complete, explorer app as default, external adapter SD card by lightning connection with explorer option as default... 
    I would just add Android and l33t specs to that shopping list. Also, TouchWiz and a curvy screen, for no other reason than because.
  • Reply 13 of 21
    More smoke to the fire. Its time for us Apple fans to realize that March and June quarter will show iPhone unit sales declines YoY. The only thing that can boost iPhone unit sales the next 2 quarters is if the 4 inch phone becomes a big hit and a ton of 4/5 series users were really waiting for it. 

    This news pretty much puts a lock that we see $80 share price in a few months or sooner. Could happen as soon as January 26th earnings call. If Apple guidance for revenue decline for March quarter things could get really ugly. I'd sell some shares now at $100 or gather some capital for the inevitable drop to $80. Long term I see Apple reach $125 by end of year and $140 if 7s shows unit growth. 


    You another Sog sock puppet?
    Sog didn't believe the rumors, and wanted Tim Cook to dispel them. This person believes the rumors are true, and Apple is failing, because iPhone is failing.
  • Reply 14 of 21
    canukstormcanukstorm Posts: 1,953member
    adrayven said:
    wow dude. Chill man. Just giving my opinion. I see $80 this year.  Just like 2014 when the stock dropped 40% from $700 to $385. 
    Your statement though doesn't make sense when compared to the record iPhone 6s sales reported this holiday. Every outlet reported record sales.. so how does this reflect anything but inventory adjustment? Target, Best Buy, Walmart have all reported massive Apple iPhone sales. Also, keep in mind, they don't say what they are producing for in what volumes. Apple has like 6-10 vendors per part, so a few complaining of drop-offs in production (3 so far) is a drop in the bucket. Then their is the source. DIGITIMES... The master of stock manipulation and lies.
    Correct me if I'm wrong but iPhone 6s sales, or for that matter iPhone sales, haven't been reported for the holiday quarter & won't be reported until January 26th.
  • Reply 15 of 21
    maestro64maestro64 Posts: 4,599member

    Face it people, this was coming and this was the thing the market was talking about. It is not an Apple issue it is an industry issue. At this time it is no longer matter what Apple did last quarter the market is looking only at 2016 and it is going to be a tough year for all. I personally believe because of Apple track record they will do better than the competitors, but it still will be a tough yr.

    Also, keep in mind many of their companies do business with more than Apple, these cuts I am almost sure are coming from all sources of their business, You do not hear 30% cuts and companies saying they are holding off capital investments because one customer begins cutting numbers. All the cell phone companies are beginning to run into issues. Everyone who wants a smart phone has one, if they do not there are plenty of used one they can easily buy for cheap. Apple's being at the top of the list of available used phones. The problem with Apples high quality and backwards compatibility, phones which are 2 and 3 yrs old are still good to use. Can not say the same for cheap Andriod phones. I have a few and I can not give them away.

  • Reply 16 of 21

    For me, the biggest problem right now is the value of the american dollar. Here is what happened in Canada for iPhone 6 to iPhone 6S in one year 

    2014

    • iPhone 6   64 GB   859 $ Can 
    • iPhone 6 128 GB   969 $ Can 


    2015

    • iPhone 6S   64 GB  1029 $ Can 
    • iPhone 6S 128 GB  1159 $ Can 
    • iPhone 6     64 GB     859 $ Can 


    today, if you buy last year iPhone, you pay the same price as last year, for current model, there is a 20% increase in the price. Believe me when I say that salary did not increase 20% here.

    I know that R&D are made in USA, but most component and assembly are not made in US $. So why so much increase. 

    Canada does not have real big impact on Apple sales, but I guess other country must have seen they currency drop compare to US dollar, maybe Euro for example. 

    StockJerk
  • Reply 17 of 21

    For me, the biggest problem right now is the value of the american dollar. Here is what happened in Canada for iPhone 6 to iPhone 6S in one year 

    2014

    • iPhone 6   64 GB   859 $ Can 
    • iPhone 6 128 GB   969 $ Can 


    2015

    • iPhone 6S   64 GB  1029 $ Can 
    • iPhone 6S 128 GB  1159 $ Can 
    • iPhone 6     64 GB     859 $ Can 


    today, if you buy last year iPhone, you pay the same price as last year, for current model, there is a 20% increase in the price. Believe me when I say that salary did not increase 20% here.

    I know that R&D are made in USA, but most component and assembly are not made in US $. So why so much increase. 

    Canada does not have real big impact on Apple sales, but I guess other country must have seen they currency drop compare to US dollar, maybe Euro for example. 

    This is the biggest headwind to AAPL and it's not just Canada: add Japan, Russia, Australia NZ, all of Europe (less UK) all the Mideast/Africa and India
    China only by a little and recently
    The USDollar rising against almost all other currencies by 10-40% in 2015 is not a good thing for selling products and reporting in US$. 2 options for a company like Apple here and either sucks for AAPL:
    1) leave foreign prices alone and take in 10-40% less per sale = OUCH MARGINS
    2) Increase prices in those markets by the difference = OUCH SALES

    that's why this is a big deal, and why AAPL is hurting for now
    hopefully people are still upgrading despite high prices, stay tuned for the 26th...
  • Reply 18 of 21
    lkrupplkrupp Posts: 7,162member
    To sell more iPhones, Apple should bring:
    -new design with no bezels
    -more mAh battery capacity (not less) 
    -32GB minimal 
    -really new features like waterproof 
    -make front color like back (front black + back black, gold front + gold back...) 
    -compatibility like bluetooth transfer complete, explorer app as default, external adapter SD card by lightning connection with explorer option as default... 
    And I’ll bet you’re still waiting for a Mac mini tower too.
  • Reply 19 of 21
    dachardachar Posts: 330member
    More smoke to the fire. Its time for us Apple fans to realize that March and June quarter will show iPhone unit sales declines YoY. The only thing that can boost iPhone unit sales the next 2 quarters is if the 4 inch phone becomes a big hit and a ton of 4/5 series users were really waiting for it. 

    This news pretty much puts a lock that we see $80 share price in a few months or sooner. Could happen as soon as January 26th earnings call. If Apple guidance for revenue decline for March quarter things could get really ugly. I'd sell some shares now at $100 or gather some capital for the inevitable drop to $80. Long term I see Apple reach $125 by end of year and $140 if 7s shows unit growth. 


    Do we know for a fact that these suppliers are being used for the 6S? If you're right I'm not what the iPhone 7 is going to bring to the party. Are people really not buying the 6S because aesthetically it looks just like the 6? Same thing with this rumored 4" phone. Are there that many people who didn't want a larger phone? And are they willing to buy an inferior phone (there's no indication this phone will have all the flagship features of the 6S) just because it's 4"? Again, if all this is true then IMO it means iPhone peaked with the 6 and Apple needs something else to pick up the slack.
    I don't want a bigger phone nor do l want some of the latest 6S things.  I would be happy to purchase  an improved 4 inch iPhone to replace my 5.  My key requirements are ApplePay, more than 16 gb of storage and a price lower than a 4.7 inch 6S. I actually believe there are a significant number of customers who don't want bigger phones. We will only know for sure once a replacement of the 5S is released.
    quinneycanukstorm
  • Reply 20 of 21
    jdnc123jdnc123 Posts: 233member
    Now Qorvo and Cirrus guiding down after market.  More smoke, surely a fire is tough to dispute at this point.

    Frankly, I'm amazed but it sure seems like Google gonna have bigger market cap than Apple in a couple to few weeks.

    Steve Jobs gotta be rolling over in his grave at the notion Google more valuable than Apple.
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