At the beginning of the year, a report surfaced that suggested Apple was scaling back the production of the iPhone 6s/6s Plus due to an overall lack of demand.
Since then, reports have come and gone that go back-and-forth with this conceit, not really providing a definitive answer one way or another. Some reports have said that there isn’t any fear of “peak iPhone,” or that sales are slumping in the slightest. Others, though, aren’t so optimistic. For instance, a brand new report from The Wall Street Journal says that revenue from Apple’s suppliers is getting impacted in a big way, and it has to do with “slowing iPhone sales.”
The report, which was published on January 14, says that Taiwan Semiconductor Manufacturing, Co., forecast its early expectations for the first quarter of 2016, and that it expects to see revenue fall by as much as 10.8 percent. The reason for this is said to be slowing demand for smartphones, including the iPhone. And Apple plays a big role in TSMC’s business, accounting for upwards of 20% of sales for the manufacturing company.
The report goes on to get some outlooks from other Apple suppliers, including Catcher Technology, Co., which said that its revenue for the early part of 2016 would be flat, when compared to the year prior. Largan Precision, Co., said that its own revenue would be “quite weak” in the first quarter of 2016 — a hit for a company that supplies camera modules for Apple.
It is worth noting that, typically, the beginning of a year is a slow season for suppliers, so all the doom-and-gloom talk could simply be in light of this. Which would make sense, considering the reports going from one end of the spectrum to the other. And, of course, the initial report goes on to say that future forecasts, for later in the year, are quite positive, especially in light of the next iPhone (rumored to be called the iPhone 7) launch.
[via The Wall Street Journal]
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