Apple suppliers expecting 50% component order cut for 'iPhone 12'

AppleInsider

Sources in the supply chain say the company is dropping its component ordering by at best 50% of its original estimates for 2020.

Mockups of what the iPhone 12 may look like

Following continued speculation that Apple will delay the "iPhone 12," suppliers are now reporting that the company is expecting to ship far fewer in 2020. Customers are under unexpected financial pressure because of the coronavirus, but a 50% drop in orders may mean Apple is moving its shipments back so that more sales take place in early 2021.

"5G iPhone shipments may be much weaker than expected in 2020," reports Digitimes, citing unnamed sources within the supply chain.

"Shipments of mmWave-enabled 5G iPhones slated for launch later this year are estimated to reach only 15-20 million units in 2020 compared to a previous supply chain estimate of 30-40 million units," it continues, "intensifying competition among Apple's suppliers of FC-AiP substrates for the new phones."

Other sources have said the regular September launch may move to October, or possibly even later. Most recently, supplier Broadcom reported that it doesn't expect to see profits rise until Q4 2020 because of a "major cycle delay" at a firm believed to be Apple.

The "iPhone 12" range is expected to consist of four models, all with 5G connectivity. Reports have varied over whether all four will feature the faster mmWave 5G, or whether that will be confined to the "iPhone 12 Pro" and "iPhone 12 Pro Max" models.

Digitimes has a poor track record in predicting specific features of Apple products. However, the venue is a good source of macro data from suppliers and manufacturers within Apple's supply chain.

mike1

Here we go again.

daalseth

mike1 said:

Here we go again.

Yup, the beginning of July is about when the "Apple is cancelling component orders because the next iPhone will tank" stories always appear. 

lkrupp

AppleInsider said:

Sources in the supply chain say...

When have we ever heard that claim? We've heard it may times just before sales of the product took off like a Falcon 9 headed for the ISS. 

edited June 2020

jfc_pa

It’s July already? Time flies. 

50% “slash” sounds familiar. Giggle. 

gmgravytrain

And yet there are still people claiming there is going to be some 5G iPhone supercycle which is the exact opposite.  I'm only saying there always seems to be such extremes in articles about Apple.  We all need to wait to see what happens when the time comes.  I think sales will be OK.  Not terrible and not great, but satisfactory.  I know there are a lot of people out of work who may not be able to afford a new iPhone but that's just how I see it.

avon b7

Anything is possible, everyone is in the same boat to a degree but 50% does seem somewhat extreme.

If rumours are to be believed, this year's lineup is going to tick some of the bigger checkboxes and pricing looks to have been adjusted pretty well. 

It's definitely true that a lot of people will not have that much disposable income available during which could be a cash strapped Christmas for many. Realistically though, it is virtually impossible to know how consumer spending will be impacted even if there are only 5 months left in the year. Hedging bets is logical but a 50% cut would be a lot. 

beats

avon b7 said:

Anything is possible, everyone is in the same boat to a degree but 50% does seem somewhat extreme.

If rumours are to be believed, this year's lineup is going to tick some of the bigger checkboxes and pricing looks to have been adjusted pretty well. 

It's definitely true that a lot of people will not have that much disposable income available during which could be a cash strapped Christmas for many. Realistically though, it is virtually impossible to know how consumer spending will be impacted even if there are only 5 months left in the year. Hedging bets is logical but a 50% cut would be a lot. 

Apple doesn't tick boxes dude. Apple does what it needs to do.

avon b7

Beats said:

avon b7 said:

Anything is possible, everyone is in the same boat to a degree but 50% does seem somewhat extreme.

If rumours are to be believed, this year's lineup is going to tick some of the bigger checkboxes and pricing looks to have been adjusted pretty well. 

It's definitely true that a lot of people will not have that much disposable income available during which could be a cash strapped Christmas for many. Realistically though, it is virtually impossible to know how consumer spending will be impacted even if there are only 5 months left in the year. Hedging bets is logical but a 50% cut would be a lot. 

Apple doesn't tick boxes dude. Apple does what it needs to do.

But consumers do, 'dude'. 

edited June 2020

crowley

Beats said:

avon b7 said:

Anything is possible, everyone is in the same boat to a degree but 50% does seem somewhat extreme.

If rumours are to be believed, this year's lineup is going to tick some of the bigger checkboxes and pricing looks to have been adjusted pretty well. 

It's definitely true that a lot of people will not have that much disposable income available during which could be a cash strapped Christmas for many. Realistically though, it is virtually impossible to know how consumer spending will be impacted even if there are only 5 months left in the year. Hedging bets is logical but a 50% cut would be a lot. 

Apple doesn't tick boxes dude. Apple does what it needs to do.

And when Apple does what it needs to do then it checks the box to say that it has done it.

jfc_pa

Just saw a report discussing “weak” 5G iPhone shipments. For a phone that won’tbe released or sold for months. 

Idiocy. 

And it was CNBC not that idiot in Forbes. 

edited June 2020