As Apple enters calendar Q2, normal Seasonality is set to begin with a little extra pressure due to China other external factors
Product shipments for Apple and the industry begins around Q2 of every year and yet some in the press try to associate slower shipments to something wrong with demand. One of Nikkei's latest reports plays up seasonality as Apple products dropping in demand blaming of all things the war in Ukraine.
The Nikkei takes a blind swipe at Apple's AirPods: "The company shipped about 76.8 million units of AirPods in 2021, Counterpoint Research data showed, but people with knowledge of the situation said overall shipments for 2022 could likely see a decline." How general could that be?
The report further noted that "Apple launched the iPhone SE as its first 5G-capable budget phone less than three weeks ago but is now telling multiple suppliers that it aims to lower production orders by about 2 million to 3 million units for the quarter, citing weaker-than-expected demand, four people told Nikkei Asia."
However, if there's a slight drop in iPhone SE sales it may be due to a drop in general smartphone sales drop in China. The Nikkei reports that " that China set a growth target this year, the mildest over the past 30 years." China has also been hit with a new strain of COVID 19 known as BA.2 or "Stealth Omicron." A new report today points to a new phased in COVID 10 lockdown in Shanghai.
Seasonality has begun and world events will naturally affect the entire industry and not Apple alone. Read the full Nikkei Asia report for more.
It should also be noted that the Twitter site that one-time great Apple analyst Ming-Chi Kuo is reportedly using, is once again reporting from behind rather than ahead of the curve as he was famous for. His tweet shown below came after the Nikkei report was posted.
Kuo has also recently been pointing to rumor reports from Apple news sites as his source for his commentaries, something that Kuo never did when at TF Securities International. His reputation is being marred with with his lack of detail and being behind the news curve. Going forward, Patently Apple will only report on Kuo's Tweets/commentaries when something original is being made public.