Apple Japanese Suppliers Experience Parts Boom due to the iPhone 6 and 'Samsung Shock' as Galaxy S6 Sales Crash
Last December we posted a report titled "Apple to Build Cutting Edge R&D Center in Japan." In July we reported that Apple's job opportunities for that centre included skill sets for industrial materials, vehicle and health segments. While Apple is looking to establish a larger future footprint in Japan, they're also quietly supporting and building their supply chain in Japan.
Today we learned that six major component makers in Japan saw total revenues from April-June 2015 increase 17% on year for a value of US$10.67 billion, largely due to strong demand from the iPhone, according to a new report from Nikkei Asian Review.
Murata, TDK, Kyocera, Nidec, Nitto Denko and Alps Electric are the six majors who have seen healthy performances due to new demand for iPhone 6 and iPhone 6 Plus, with supply chains focused on small capacitor applications accounting for 60% of the overall April-June performance.
TDK held a 20% share within that percentage and Alps 8%, the report said, adding that the makers expect continued growth in the second half of 2015 due to new iPhone orders.
Supply chains in Japan associated with Samsung Electronics and Huawei Device meanwhile have seen relevant orders drop 10% on year in June while semiconductor manufacturing and equipment makers saw declines overall in the first half of 2015.
In a second report by Nikkei Asian Review noted that Japanese parts and machinery makers are bracing for another "Samsung shock" as the South Korean consumer electronics giant struggles with sluggish sales of its latest smartphone model, the Galaxy S6. Disappointing sales by Samsung Electronics dealt a similar blow to its suppliers last year.
A sales representative at one Japanese electronics materials maker said his company is taking a hit from the lackluster performance of the Galaxy S6. "[The phone's] sales were temporarily strong but soon fell below the expected volume," he said. Samsung Electronics is one of the Japanese company's major customers. The sales rep further commented that "It's exactly the same as with the previous model, the S5. I hate to say this, but my feeling is, 'Not again.'"
Samsung is planning to launch their new Galaxy Note 5 ahead of schedule due to their fear that Apple's updated iPhone 6 phablet could hit their sales once again.