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Apple's Supply Chain hoping that Apple's iPhone XR Sales are hot enough to stimulate iPhone Sales Overall in China

18.5 Cover - Supply Chain News - Rumors

 

In the last 24 hours we've read about Goldman Sachs pointing to iPhone sales in China "rapidly slowing down" and then Ming-Chi Kuo stating that the iPhone XR will be a smash hit and now Apple's supply chain is weighing in nervously about iPhone sales. It's difficult to know whether these iPhone jitters are real or politically motivated.

 

A new Digitimes report today states that "Despite the iPhone XR slated for launch in the latter half of October, Taiwan-based suppliers engaged in the Apple supply chain remain cautious about orders for the new iPhone series for the rest of 2018, according to industry sources.

 

If sales of the upcoming iPhone XR, which will be priced lower than the XS models, fail to stimulate the overall demand for iPhones, said the sources, Apple may slow down its pace of orders."

 

While the success of the iPhone XR is still a big question at the moment until if begins shipping, irrational fears and doubt expressed by the supply chain to the press isn't really newsworthy until real facts begin to prove such a negative.

 

The report then states that "Suppliers for the new iPhones are expected to post weak sales for the fourth quarter of 2018, the sources noted. TSMC, for example, will likely generate lower-than-expected revenues in the fourth quarter, which may prompt the foundry to revise downward its sales guidance for all of 2018, the sources continued.

 

Largan Precision, another Apple supplier specializing in camera lens, disclosed recently that shipments are expected to decrease in October and drop further in November. Order visibility for December is still unclear, the company also warned."

 

Yet it's a known fact that Apple will at times shift orders or portions of orders for parts to other suppliers, so one supplier complaining of a slowdown doesn't necessarily prove a slowdown in general. That's just speculative nonesense.

 

Lastly, Digitimes sources noted that "the ongoing US-China trade war will likely have a negative impact on the overall smartphone demand, which is already decelerating, in the fourth quarter of 2018."

 

While this doom and gloom is playing out in the press, Apple's CEO has been in China to visit with ByteDance, one of the hottest start-ups in China along with visiting the Chaoyang Future School in Beijing and likely the Tsinghua University School of Economics and Management where Cook is a board member.

 

2 cook in China oct 2018

Cook's new Weibo page shows that his trip was filled with meetings with various groups.

 

While Apple's Q3 Financials will be reported on November first, the iPhone X was the number one smartphone in China in Q2.

 

In general, tensions are currently high in China as stock prices are plummeting due to fears of the ongoing trade dispute with the U.S. Fear generally fuels negative speculation.

 

10.1 Supply Chain News & Rumors

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