We had noted back in late March that pre-orders for Apple's new iPhone SE in China alone had exceeded 3.4 million units which pointed to a roaring start for Apple's third iPhone model that returns the 4" display with upgraded features. Today, a new Taiwan supply chain report states that the launch of the relatively low-priced iPhone SE in China has squeezed market share from local brands, including Huawei, Xiaomi Technology, Vivo and Oppo, affecting the earning performance of these brands.

Makers in the handset supply chains in Taiwan and China are becoming more conservative about building up inventories for parts and components due to intensifying competition in the China market as a result of the release of the iPhone SE.

The report further noted that Apple's recent efforts to upgrade the internal voltage of its power supply devices from 15 volts to 20 volts to improve charging efficiency has also left power supply makers with excessive inventories. Meanwhile, IC suppliers have also been pushed to develop new power management (PWM) ICs to meet Apple's new requirements.

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