Apple supply chain wary of reduced iPhone orders for Q4
Parts of the supply chain are tempering their expectations on iPhone sales for the remainder of 2018, a report claims, with weak sales said to be feared by suppliers based in Taiwan, despite the impending launch of the iPhone XR.
After the release of the iPhone XS and iPhone XS Max, and ahead of the upcoming opening of preorders for the iPhone XR, Apple's suppliers can usually expect a high number of orders in anticipation of the holiday shopping season. This apparently hasn't stopped suppliers from exercising caution over the imminent introduction of a lower-cost model.
Industry sources of DigiTimes suggest that if sales of the iPhone XR fail to stimulate overall demand for iPhones, Apple could slow down its pace of orders from suppliers, in turn damaging revenue.
Suppliers are already expecting to post weak sales in the fourth quarter of 2018 the report claims, with TSMC thought to generate "lower-than-expected revenues" in the fourth quarter, potentially forcing the chip foundry to revise its sales guidance for all of 2018 to a lower level.
In the case of Apple camera lens supplier Largan Precision, the company recently disclosed its shipments are expected to decrease in October, followed by another drop in November, similar to what happened at the end of 2017. The projected level of orders in December is "still unclear" for the lens firm.
It is also believed the ongoing trade war between the United States and China will impact overall smartphone demand, with shipments in the fourth quarter of 2018 already said to be decelerating.
At present, it isn't clear why the alarm from the component manufacturers is happening. At first glance, the order drops do not appear to be any more pronounced than in previous years, with normal seasonal decreases in orders.
The supply chain report seems to go against statements made by analyst Ming-Chi Kuo predicting higher-than-anticipated demand for the iPhone XR, with Apple expected to have about 38 million units ready in time for holiday sales. The strong demand leads Kuo to believe the model will defeat a "low seasonality" after the holiday quarter, with a 30 percent drop in sales in the new year rather than a near 50-percent drop saw by the iPhone 8.
Kuo also changed his estimated overall iPhone shipments for the quarter from 80 million to 83 million. Before the iPhone XS and iPhone XR release, DigiTimes Research anticipated shipments for the quarter of over 85 million units.
After the release of the iPhone XS and iPhone XS Max, and ahead of the upcoming opening of preorders for the iPhone XR, Apple's suppliers can usually expect a high number of orders in anticipation of the holiday shopping season. This apparently hasn't stopped suppliers from exercising caution over the imminent introduction of a lower-cost model.
Industry sources of DigiTimes suggest that if sales of the iPhone XR fail to stimulate overall demand for iPhones, Apple could slow down its pace of orders from suppliers, in turn damaging revenue.
Suppliers are already expecting to post weak sales in the fourth quarter of 2018 the report claims, with TSMC thought to generate "lower-than-expected revenues" in the fourth quarter, potentially forcing the chip foundry to revise its sales guidance for all of 2018 to a lower level.
In the case of Apple camera lens supplier Largan Precision, the company recently disclosed its shipments are expected to decrease in October, followed by another drop in November, similar to what happened at the end of 2017. The projected level of orders in December is "still unclear" for the lens firm.
It is also believed the ongoing trade war between the United States and China will impact overall smartphone demand, with shipments in the fourth quarter of 2018 already said to be decelerating.
At present, it isn't clear why the alarm from the component manufacturers is happening. At first glance, the order drops do not appear to be any more pronounced than in previous years, with normal seasonal decreases in orders.
The supply chain report seems to go against statements made by analyst Ming-Chi Kuo predicting higher-than-anticipated demand for the iPhone XR, with Apple expected to have about 38 million units ready in time for holiday sales. The strong demand leads Kuo to believe the model will defeat a "low seasonality" after the holiday quarter, with a 30 percent drop in sales in the new year rather than a near 50-percent drop saw by the iPhone 8.
Kuo also changed his estimated overall iPhone shipments for the quarter from 80 million to 83 million. Before the iPhone XS and iPhone XR release, DigiTimes Research anticipated shipments for the quarter of over 85 million units.
Comments
Heck, I come to work wary every day.
Or is it that you think that everybody on the planet bought their first iPhone in exactly the same year?
So let me get this straight ... on the between years that you aren’t replacing your phone because of the price you will pick up a Mac Pro that starts at $2999.00 usd instead, if there is innovation ? Or is it that you believe a refresh of the Pro and Mini will create millions of supplemental sales in case iPhone starts to not do well in the next year or so?
Stick around for a while and you will see supply chain rumors are always wrong and have zero to do with how well the iPhone actually sells. You will also see that just because Ming-Chi Kuo tacks his 2c onto a rumor does not give it any more credibility.
So your logic is - you don't replace your phone every year - so Apple doesn't need to update their iPhone models every year.
If you can't see the nonsense in this statement, there is no hope for you...
If I was in charge then I'd make everyone take some sort of basic intelligence test before allowing them an internet connection.
Apple Iphone doesn't sell well that orders for its parts will soon be reduced.
What is this "junking" you speak of. I can sell my iPhone X today for $750ish then pay $250 out of pocket for the Xs or $350 for the Xs Max
The last time I paid retail out of pocket for a phone was over 10 years ago.
Lol, Apple is wildly famous for their 5 years of support for OS upgrades on their hardware (mobile... sometimes longer on computers).
Yup... obsolete after 1 year would DEFINITELY be insane. Good thing you pulled that out of your ass, & it has zero to do w/ reality.