Apple Reduces New Mobile Phone accessories Purchase Order

TechWeb Report On July 9th, according to the Nikkei News, Apple has asked its Apple accessories suppliers to reduce the production of parts used in the iPhone in the second half of 2018 by about 20%.

The Financial Times quoted two industry sources as saying that Apple expects total shipments of the iPhone to reach 80 million this year, which is lower than Apple’s planned 100 million units in the same period last year.

One of the sources said: "Apple is quite conservative in terms of new orders for the iPhone to be released this year."

In addition, the report has also raised concerns that consumer enthusiasm for the new smartphone may cool down after years of strong growth, which has led to a fall in stock prices of Apple and many major suppliers and put pressure on global stock markets.

On Friday, local stocks fell 2.2% in pre-market trading to $189.20. Apple supplier AMS shares fell 6%, while another supplier Dialog Semi shares fell 4.01%.

According to reports, the company plans to launch three new iPhones in 2018, and will start shipping in September this year after Apple's new product release.

In the fiscal year ending September 30, Apple sold 217 million iPhones, including the old iPhone. It doesn't break down the data by model and is still making a lot of early versions of the phone.

Some analysts expect that as global mobile phone demand tightens and competitors eat into Apple's sales, Apple's mobile phone sales this year will be reduced compared to last year. In the past two quarters, the company sold 129.5 million iPhones, almost unchanged from the same period last year.

Earlier, Apple said it will cut its power management chip orders by about 30% this year.

Atlantic Securities analyst James Cordwell said: "As the iPhone's annual improvements become more and more insignificant, it may become more difficult to convince consumers to pay for the latest phones, because the old devices actually It is equally good."

In the past six months, the media's speculation on the demand for iPhone X is endless, but Apple's market value continues to climb, and is now close to $1 trillion.

D.A. Davidson & Co analyst Thomas Forte also played down any concerns. He said: "I am not too worried about the speculation of low supply. Overall, Apple has done enough work to keep the market moving forward."

So far, the iPhone is Apple's largest revenue-generating product. However, in order to offset the impact of the weak smartphone market, the company has always seen its services as a growth path.

The company's services division, including Apple Music, the App Store and iCloud, contributed $9.1 billion in revenue in the second quarter. In fiscal 2017, the iPhone contributed 62% of Apple’s total revenue, while the service business contributed 13% of revenue. (Little Fox)

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