Suppliers accusing Apple of over-estimating future iPhone sales

Posted:
in General Discussion
Apple has reportedly given its supply chain production and sales estimates for the "iPhone 12" and other models produced for the fall that the companies believe are too optimistic.

Renders made from a combination of leaked CAD designs and separately sourced information
Renders made from a combination of leaked CAD designs and allegedly separately sourced information


As the effects of the coronavirus continue to affect businesses worldwide, Apple appears to be faring better at resuming production than most. However, according to a report on Tuesday, suppliers remain cautious and doubt Apple's predictions for what it will need in the short-term.

According to the Nikkei Asian Review, Apple has told suppliers that it intends to produce 213 million iPhones between March 2020 and March 2021. That is roughly a 4% increase over the same period in 2019 and 2020.

That estimate is lower than a previously reported 220 million iPhones, so Apple has reduced its estimates down because of the coronavirus impacting both production and sales. Nonetheless, suppliers have told Nikkei Asian Review that the revised number are still unrealistic.

"Apple's production outlook is pretty bullish, and we will need to assess whether it is based on a realistic demand [forecast]," one unnamed components maker told the publication. "Actual production could be 10% to 20% lower."

Another source, identified only as a display procurement manager, said in Tuesday's report that Apple is likely to have to change its estimates. "Apple may want to adjust inventories so that they have sufficient stocks in the fall and [at] Christmas."

Nikkei Asian Review's sources also said that the 213 million iPhones are expected to be divided 50/50 between existing and new models. In addition to the recently released iPhone SE, Apple is expected to release up to four new 5G-capable "iPhone 12" models at the end of the year.

This report follows a questionable one in the Nikkei Asian Review which claimed that the "iPhone 12" would be delayed by some months.

The Nikkei Asian Review has an adequate track record in reporting the comings and goings of Apple's supply chain. Like most other supply chain monitors, however, it has a poor record in predicting Apple's product plans.

Comments

  • Reply 1 of 8
    My eyes just rolled so hard they're in the ditch, legs flailing in a vain attempt to right themselves.
  • Reply 2 of 8
    lkrupplkrupp Posts: 10,183member
    Nikkei Asian Review = no credibility whatsoever. At least AppleInsider labels their reports as ‘questionable’ now and then. Remember when IDC released a report that stated Windows phones would overtake the iPhone by 2012. I don’t really see the purpose of republishing these opinions every time one hits the internet. 

    And if you make your AAPL  investment decisions based on stuff like this, well, I really feel sorry for you. 
    leavingthebiggBeatsmuthuk_vanalingamspock1234jony0Rayz2016
  • Reply 3 of 8
    BeatsBeats Posts: 3,073member
    lkrupp said:
    Nikkei Asian Review = no credibility whatsoever. At least AppleInsider labels their reports as ‘questionable’ now and then. Remember when IDC released a report that stated Windows phones would overtake the iPhone by 2012. I don’t really see the purpose of republishing these opinions every time one hits the internet. 

    And if you make your AAPL  investment decisions based on stuff like this, well, I really feel sorry for you. 

    I'm personally still waiting for that iPod killer.
    spock1234
  • Reply 4 of 8
    yojimbo007yojimbo007 Posts: 1,163member
    Nikkei is a very well known Apple Bear and BS er.... has been for looooooog time.. So reader beware !
    spock1234
  • Reply 5 of 8
    Rayz2016Rayz2016 Posts: 6,957member
    lkrupp said:
    Nikkei Asian Review = no credibility whatsoever. At least AppleInsider labels their reports as ‘questionable’ now and then. Remember when IDC released a report that stated Windows phones would overtake the iPhone by 2012. I don’t really see the purpose of republishing these opinions every time one hits the internet. 

    And if you make your AAPL  investment decisions based on stuff like this, well, I really feel sorry for you. 
    Actually, I sort of do. I wait for one of these bogus reports to show up, then wait for AAPL to tank as the short-term thinkers panic, then pick  up shares on the cheap. 

    I think Apple does the same thing. 
    muthuk_vanalingam
  • Reply 6 of 8
    maestro64maestro64 Posts: 5,037member
    Beats said:
    lkrupp said:
    Nikkei Asian Review = no credibility whatsoever. At least AppleInsider labels their reports as ‘questionable’ now and then. Remember when IDC released a report that stated Windows phones would overtake the iPhone by 2012. I don’t really see the purpose of republishing these opinions every time one hits the internet. 

    And if you make your AAPL  investment decisions based on stuff like this, well, I really feel sorry for you. 

    I'm personally still waiting for that iPod killer.
    Its called the iPhone
    revenant
  • Reply 7 of 8
    WgkruegerWgkrueger Posts: 352member
    I don’t get why suppliers care if Apples estimates are overly optimistic. If Apple orders a certain number of iPhones don’t they get to produce them and bill back Apple for their efforts even if Apple ends up with a surplus? Or do they get stuck with an over abundance of parts that go unused? 
    muthuk_vanalingam
  • Reply 8 of 8
    xsmixsmi Posts: 138member
    As long as they have mine on day one. This iPhone X is getting long in the tooth. 
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