Lens maker Sony doesn't expect high demand for the iPhone 15

AppleInsider

Apple lens supplier Sony says the worldwide economic downturn means there won't be as much demand for the iPhone 15 as it expected.

iPhone 14 Pro camera

So far this year, Apple has seen lower than normal iPhone sales -- but made up for it through its Services earnings -- but it still has the iPhone 15 launch to come. Sony had previously said that it expected to see a recovery in its smartphone sensor business during the second half of 2023, but now says it will be 2024, at least.

According to Bloomberg, Sony announced this during its latest earnings call, and chiefly blames the decline on a lack of sales in China.

"The recovery of the smartphone market in China is slower than we expected and conditions in the US market are worsening," said Sadahiko Hayakawa, a senior general manager for finance. "We had expected the smartphone market to start recovering from the second half of this fiscal year, but now we expect that would not happen until at least the next year."

Seemingly, Sony did not mention the iPhone 15 by name, but it is the major smartphone launch scheduled for the remainder of 2023. It suggests that Apple is not predicting a significant increase in demand over the iPhone 14 range, however, it could also be that Sony's manufacturing capacity is constrained.

Sony's predictions for the future, though, do match analyst Ming-Chi Kuo's recent report that iPhone 15 demand will be lower than for its predecessor.

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mayfly

If they're the ones making the lenses, it's pretty apparent that they KNOW exactly how many Apple expects to sell, based on pre-orders, no?

fred1

Good. Maybe this means they’ll be nice and cheap. One can wish, no?

gmgravytrain

In a recent earnings report, Apple warned of weak iPhone sales for the remainder of the year, so this news isn't unexpected.  I'm surprised Apple hasn't sold off further.  Shareholders absolutely hate hearing that sort of news.  They seem to think that no matter how bad the economy is, a company should manage to sell as many products as when the economy is strong.  I suppose they'll just have to find a company that isn't affected by the economic downturn.  I'm sure there are a few out there.  Apple is too dependent upon consumers and should be attempting to get more sales from enterprise companies.

danox

Nonsense, if it’s a step forward, people will buy, and when it is introduced if you press that buy button at 12:30 AM you won’t be getting that new Apple smartphone for two months, but if you buy at 12:01 you might get it in two weeks your choice. The same scenario will play out with the Apple Vision Pro to those who will hesitate, and then cry about their entitlement when they can’t get immediate gratification.

This scenario has played out the same way since 2007……..

edited August 2023

chadbag

gmgravytrain said:

Apple is too dependent upon consumers and should be attempting to get more sales from enterprise companies.

Apple makes a lot of effort to go after the enterprise business with their non Mac lines.  There (Mac) I don’t have much info.  But the company I work for makes an iOS and an Android version of our apps, which are not at all consumer oriented (you need expensive server backends and it is healthcare service oriented).  Apple tries to get us to do exclusives or bid with us on deals and is heavily involved in this sector and getting customers on the iOS bandwagon.  If they can sell 500 or 5000 phones in one sale to a customer adopting or upgrading their installation, that is a big win. And they spend effort on it.  You don’t see the effort because things like social media, sorts events, TV etc based advertising is not how that sector works.  

mayfly

gmgravytrain said:

In a recent earnings report, Apple warned of weak iPhone sales for the remainder of the year, so this news isn't unexpected.  I'm surprised Apple hasn't sold off further.  Shareholders absolutely hate hearing that sort of news.  They seem to think that no matter how bad the economy is, a company should manage to sell as many products as when the economy is strong.  I suppose they'll just have to find a company that isn't affected by the economic downturn.  I'm sure there are a few out there.  Apple is too dependent upon consumers and should be attempting to get more sales from enterprise companies.

The great investor Peter Lynch (retired manager of Fidelity's Magellan Fund, the largest mutual fund in the world), second only to Warren Buffett in long term investment returns, called what you're suggesting, "diWORSEification." What Apple should do, is what Apple is doing, and the indisputable fact that it's the world's most valuable company proves that. Apple has focused like a laser beam on their core compentencies, constantly strengthening and improving them, and leveraging them for maximum profit. No need for Apple to jump into a market with lower margins and higher support costs.

waveparticle

One big mistake. SONY is not a lens maker. It is the sole image sensor chip supplier to Apple and most of Android phone makers. The lens are made by different companies. 

charlesn

danox said:

Nonsense, if it’s a step forward, people will buy, and when it is introduced if you press that buy button at 12:30 AM you won’t be getting that new Apple smartphone for two months, but if you buy at 12:01 you might get it in two weeks your choice. The same scenario will play out with the Apple Vision Pro to those who will hesitate, and then cry about their entitlement when they can’t get immediate gratification.

This scenario has played out the same way since 2007……..

What you ignore is that it has become increasingly difficult for smartphones (not just Apple), which are fairly mature at this point, to take a compelling step forward because they do so much so superbly that they already exceed what the vast majority of people would ever need. This is very much NOT like 2007. So sure, we'll get the A17 in the new iPhone Pro, but is anyone finding the A16 too slow? I didn't think so.

There are a few issues that I think will make the iPhone 15 an even harder sell: first, it's the fourth year with the same design, so no excitement there. Second, many of the best upcoming improvements will be available to all iPhones supported by the new iOS 17. Third, just listen to what the rumor mill has to offer for hardware improvments: USB-C (yawn), bezels that are one or two millimeters thinner (yawn) and maybe a periscope zoom lens on the 15 Pro Max. Are we asleep yet? No? Then repeat slowly after me: Deep Red. 

Obviously, the 15 will still sell millions, but fewer millions than in the past as the dearth of compelling reasons to upgrade stretches out the upgrade cycle for buyers. 

edited August 2023

mayfly

waveparticle said:

One big mistake. SONY is not a lens maker. It is the sole image sensor chip supplier to Apple and most of Android phone makers. The lens are made by different companies. 

Wrong:
https://mezha.media/en/2022/12/13/the-iphone-uses-cameras-manufactured-by-sony-tim-cook-confirmed-the-cooperation/#:~:text=The%20iPhone%20uses%20cameras%20manufactured%20by%20Sony.

chadbag

mayfly said:

waveparticle said:

One big mistake. SONY is not a lens maker. It is the sole image sensor chip supplier to Apple and most of Android phone makers. The lens are made by different companies. 

Wrong:
https://mezha.media/en/2022/12/13/the-iphone-uses-cameras-manufactured-by-sony-tim-cook-confirmed-the-cooperation/#:~:text=The%20iPhone%20uses%20cameras%20manufactured%20by%20Sony.

Not wrong.  The “camera” is the sensor.  The lens is separate.  

waveparticle

mayfly said:

waveparticle said:

One big mistake. SONY is not a lens maker. It is the sole image sensor chip supplier to Apple and most of Android phone makers. The lens are made by different companies. 

Wrong:
https://mezha.media/en/2022/12/13/the-iphone-uses-cameras-manufactured-by-sony-tim-cook-confirmed-the-cooperation/#:~:text=The%20iPhone%20uses%20cameras%20manufactured%20by%20Sony.

You need to be educated. LOL Camera is the piece that iPhone use to capture photos. A camera is made of two main parts, the lens and the image sensor chip. The lens is outside which is mostly visible. The image sensor chip is a special light sensitive semiconductor chip.