Catcher, other Apple suppliers report setbacks rumored to be linked to iPhone 6s production cuts
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.
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.
Comments
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.
-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...
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.
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
2015
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 $. So why so much increase.
Canada does not have real big impact on Apple sales, but I guess other country must have seen they currency drop compare to US dollar, maybe Euro for example.
China only by a little and recently
The USDollar rising against almost all other currencies by 10-40% in 2015 is not a good thing for selling products and reporting in US$. 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...
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.