iPhone demand is falling, claims component supplier Skyworks
Apple supplier Skyworks has been regarded as a proxy for Apple's iPhone demand, and the company may have some bad news for investors.
Apple's iPhone 15 Pro
Skyworks does not break down its earnings by customer, but it has been a longtime partner for Apple, making wireless networking components for the company. It's not believed to be the sole supplier for any of its components, however, so a drop in its sales is not definite proof of declining iPhone interest.
Nonetheless, Skyworks CEO Liam K. Griffin has told investors that the decline in smartphone component demand is marked. Consequently, the company is planning to diversify more.
"Skyworks delivered solid results and strong cash generation in a challenging macroeconomic environment," said Griffin. "During the March quarter, in our mobile business, we saw below normal seasonal trends, with lower-than-expected end market demand."
"Over the long-term," he continued, "we intend to leverage our connectivity technology across edge-connected IoT devices, automotive electrification and advanced safety systems, and AI infrastructure."
Skyworks chief financial officer Kris Sennesael offered guidance for the June quarter, saying that it too will be down "below normal season patterns." Sennesael did say, though, that this would primarily be because of excess stock inventory slowly clearing.
Neither Skyworks nor Apple detail what volumes or specific types of wireless components are involved. However, regardless of the component or the manufacturer, Apple has a track record of buying in bulk, and also in advance, as it notably has before with TSMC.
So as well as multiple suppliers, there are different timescales. Skyworks selling fewer components in its latest quarter doesn't necessarily mean Apple using fewer in the same period.
Apple is due to report its earnings on May 2, 2024.
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Comments
There is choice in the marketplace despite what the EU/DOJ says, if Apple doesn't please you there is a fork in the road leading to the Windows and Android world. By the way Wolflow Microsoft hasn't gotten trackpads/waking up from sleep or power usage/management or even memory allocation right yet and in the Android world how's fingerprint and face-id actually working.
https://www.wired.com/story/metalenz-polar-id-first-look/ Notice how the Wired is all juiced up about something still in the laboratory? Android a Facsimile phone on so many levels and they still don't have LiDAR which every iPhone and all iPad Pro's have had for nearly five years.
Huawei has had multiple biometric authentication options (yes, more than the sole option Apple offers and gave so many problems during the pandemic) and include 3D depth sensing.
Not only that, their solution was far ahead of Apple's, allowing small object 3D modeling, landscape unlock, AI privacy, and all in a smaller notch to boot! Oh! Plus AI-AoD. Why hasn't Apple done that?
Just why Apple waited years before allowing landscape unlock is a complete mystery.
This video is over five years old and although the quality isn't great, it shows what was doable back then using 3D depth sensing.
In what world did Samsung need to eliminate the 3.5mm earphone jack? Was that a Apple world?
https://arstechnica.com/gadgets/2016/09/apple-justifies-decision-to-remove-3-5mm-headphone-jack-cites-courage/?comments=1&comments-page=1 Samsung will add LiDAR and so will Google. But maybe the processor is too weak at this time.
You mean the cheaper non LiDAR Apple iPhones that the tech analysts say that Apple should offer more of but most people don't buy?
https://9to5mac.com/2022/04/19/iphone-se-3-sales-disappoint/ Apple offers cheap but most don't buy.
https://www.fierceelectronics.com/electronics/smartphones-down-most-decade-apple-share-grows
https://omdia.tech.informa.com/pr/2023/aug/omdia-iphone-14-pro-max-is-most-shipped-smartphone-in-the-first-half-of-this-year The overwhelming % of iPhones sold in the last five years have LiDar.
They last a long time and the resale value is high, and younger family members are there to take any iPhone from the 11 series on to the 14 series and same applies to any large screen iPad third generation on.
But as for LiDAR? Yeah... No. What would they require it for that's not currently accomplished? Google and Samsung's LiDAR-less photo chops compare nicely with Apple's.
So with my future-focused 3rd eye open:
If they determine it's helpful for their augmented reality products then it will be an added sensor for them. They already use both LiDAR and radar on other current Google products, LiDAR since 2009 and Soli since 2015. So it's not as though Google hasn't had 15 years of experience implementing and fine-tuning the technologies for 3D depth-mapping and motion sensing in constantly evolving products.
They'll be fine, as will Apple and Samsung.
Sorry not all LiDAR created is the same Google and the Android crowd is pseudo LiDAR stupidly done on the cheap, Apple did it right and paid attention to the little things to get it right. Which is what you need to do to get the big bucks.
https://www.techradar.com/news/what-is-a-lidar-scanner-the-iphone-12-pros-rumored-camera-upgrade-anyway 2021
https://www.techradar.com/news/6-ways-android-phones-could-use-the-iphone-12-pros-lidar-scanner-tech 2020
"But the form of LiDAR found in Apple’s latest iPhone/iPad Pros is very different from what many top-end Android phones are using. The depth sensor used by many Android phones is formally called a time-of-flight or ToF sensor, which, for many intents and purposes, is LiDAR. Like LiDAR a ToF sensor uses reflected light to gauge distances for camera effects and AR. But it’s a scannerless LiDAR system, relying on a single pulse of light to map an entire space, while Apple is using scanner LiDAR, which uses multiple points of light to take these readings much more frequently and with greater accuracy." Might have something to do with a superior Apple Silicon SOC to process data quickly on the device?
https://gizmodo.com.au/2021/01/what-is-lidar-and-why-would-you-want-it-on-your-phone/