'Solid' forecast from Apple chipmaker Skyworks may bode well for 'iPhone 7' production
September-quarter guidance by Apple supplier Skyworks may back the idea of healthy "iPhone 7" production, despite some previous hints to the contrary, according to a new investor memo seen by AppleInsider.
Skyworks -- which produces some power and wireless components for Apple -- is anticipating a 10 to 11 percent rise in revenue in the September quarter, Wells Fargo analyst Maynard Um noted on Friday. That's stronger than any of its iPhone launch quarters in the past four years, with the exception of 2014, when Skyworks was forecasting a 47 percent growth coinciding with the launch of the iPhone 6 and 6 Plus.
Because the firm has other clients, it's hard to tell for certain if the guidance is linked to Apple, Um cautioned. In fact June was reportedly weak for the supplier's Apple business. The analyst added, however, that Skyworks management has pointed to its current inventory being raw materials or work in progress, rather than leftovers from previous production.
In June, Terry Gou -- the chairman of Apple's main manufacturing partner, Foxconn -- reportedly told subordinates to expect weak iPhone sales until early next year. That would seemingly contradict forecasts for suppliers like TSMC and Broadcom, which are expected to do well in the run-up to this fall's iPhone launch.
Nevertheless, the "iPhone 7" may not be a blockbuster, as it's predicted to be another interim upgrade improving speed, storage, and camera technology. A major redesign is only expected in next year's model, which could include an edge-to-edge OLED/AMOLED display, possibly even integrating FaceTime and Touch ID components.
Skyworks -- which produces some power and wireless components for Apple -- is anticipating a 10 to 11 percent rise in revenue in the September quarter, Wells Fargo analyst Maynard Um noted on Friday. That's stronger than any of its iPhone launch quarters in the past four years, with the exception of 2014, when Skyworks was forecasting a 47 percent growth coinciding with the launch of the iPhone 6 and 6 Plus.
Because the firm has other clients, it's hard to tell for certain if the guidance is linked to Apple, Um cautioned. In fact June was reportedly weak for the supplier's Apple business. The analyst added, however, that Skyworks management has pointed to its current inventory being raw materials or work in progress, rather than leftovers from previous production.
In June, Terry Gou -- the chairman of Apple's main manufacturing partner, Foxconn -- reportedly told subordinates to expect weak iPhone sales until early next year. That would seemingly contradict forecasts for suppliers like TSMC and Broadcom, which are expected to do well in the run-up to this fall's iPhone launch.
Nevertheless, the "iPhone 7" may not be a blockbuster, as it's predicted to be another interim upgrade improving speed, storage, and camera technology. A major redesign is only expected in next year's model, which could include an edge-to-edge OLED/AMOLED display, possibly even integrating FaceTime and Touch ID components.
Comments
You may be right about Apple losing marketshare, but that's not necessarily bad financially. Having a large % of a low-margin (or negative margin) business would be bad.
Youre seriously proposing there's a possibility Apple will post a LOSS for the quarter?
Now that's just idiocy.
I know Apple is financially healthy and will make profit next Tuesday. But those earnings will make a steep nose dive. What concerns me more is their lack of competitive new products. They're losing market share on every hardware category they're in. Tuesday numbers will prove it. Apple was about selling the best. Tim repeated that when he visited India. Well, they aren't anymore and the prizes aren't justified anymore or competitive either.
Apple is about money these days instead of bringing the best to their customers they used to do. Market will respond to that.
Apple’s share of the overall smartphone market is meaningless. All of the usual benefits of larger market share accrue to Apple regardless; manufacturing economies of scale to keep costs low and provide high margins, most desired brand among all market participants, ecosystem lock-in to get development done on your platform first, and the lion’s share of global profits. It gains these benefits from having majority share of the most important segment of the smartphone market; that being the premium smartphone market.
The reason Apple"s share of global shares declines was explained by Cook very clearly; it's because there are about 2 billion people still using feature phones, typically people who cannot afford anything more expensive. So these people, when transitioning to smartphone's, are going with the cheapest handsets and That means an Android handset. But as people transition through the Android universe, to higher-priced and more capable handsets, they eventually come to the iPhone and those who can afford one, but one. But there's far more people transitioning at any given time from feature phones to smartphone's than from Android to iPhone. Cook described Android as training wheels for the iPhone. That's an apt description.
If you want to own up to your statement then be more specific...what do you mean by a "decline"? Market share, profitability, ASP, unit sales?
Nobody questions that there will be market share decline Q/Q or Y/Y...and if because of seasonality or launch cycles then profitability is not as dire as you wildly proclaim.
There's something called ecosystem and strategy which smooths out profit fluctuations...you should read about it and then comment on that.
Please enlighten us with statistics showing all the switchers from iOS/OSX to other platforms.
...yah, I didn't think so.
Your statements are often completely ridiculous and without merit - like "Apple is so far behind on all fronts". Samsung does have a good phone with the S7, but they have hardly leap frogged Apple. Reviews have the camera and battery life better, with better (but not up to advertised) water proofing, and some like the Samsung Pay loop tech. But it is also stated that the device is a smudge magnet, front facing camera and (copied) flash produce sub-par photos, and poor screen reflectivity. The fingerprint scanner is not as good. iPhone 6s is just behind in benchmarks, and you can bet the next version in 3 months to claim that crown again. History has shown Apple devices to last longer and retain value better.
http://www.cnet.com/products/samsung-galaxy-s7/2/
I must have have missed the news related to Samsung's great PC lineup, the great advances in tablets, the leadership of their smart watches , how their music service and services business are killing it on all fronts. Or how Microsoft is selling more Surfaces than iPads. Behind on all fronts my ass...
You are a troll, and based on the fact you continually come to a forum to post nothing but negatives about a company you clearly don't like, indicates you might also be a sociopath. You might not like to hear that, but it doesn't make it any less true. For your own mental health, you might want to try posting positive things over on a Samsung or Android site.