According to Japanese financial daily the Nikkei, 80 million new model iPhones is expected to be shipped by Apple this year. that figure would be 20 per cent less than the shipments made by it at the same time last year. The report was based on industry sources.
The newspaper reported the suppliers of the California-based company have bene asked to manufacture 20 per cent less components, compared to the amount of components manufactured by them in for the planned launch of iPhone X and iPhone 8 models, for the three new iPhones that the company wants to launch by the second half of 2018.
There are existing concerns about reported trend among customers of reduction of passion and desire for the new editions of the iconic smartphones after notching up huge growth rates for years. This has resulted in a fall in the shares of Apple as well as a drop in the share value of a number of suppliers of the company which in turn has negatively impacted the global stock markets.
“This news needs to be viewed in the context of Apple probably being overly optimistic last year in relation to the prospects for its new phones, leaving it with excess inventory in the first part of this year,” Atlantic Equities analyst James Cordwell said. “At least part of this lower order forecast probably relates to Apple just being a little more realistic.”
There were no comments available from Apple about this report in the media.
Following the publication of the report, there was a 2 per cent fall in the shares of Apple. On the other hand, there were drops of 6 per cent and 4 per cent in the shares of Apple’s suppliers AMS and Dialog Semi respectively. There was a fall in the range of 1 per cent and 4 per cent in the shares of the US-based suppliers of Apple including Advanced Micro Devices, Micron Technology Intel, Broadcom and Qualcomm.
According to many analysts, demand for iPhones has also been reduced because of the high price of the iPhone X which is priced at $1,000 and this is the first iPhone following the iPhone 6 launched in 2015 that has a new design.
“Apple is quite conservative in terms of placing new orders for upcoming iPhones this year,” said one of four industry sources cited by the Nikkei Asian Review. “For the three new models specifically, the total planned capacity could be up to 20% fewer than last year’s orders.”
(Adapted from TimesofIndia.com)