Jan 17, 2019

Apple Suppliers Revised Down Their 2019 Sales Forecast Due To Weak iPhone Demand

According to the Nikkei, major Apple suppliers from Asia have already lowered their revenue forecast for 2019, and some attributed it to an “extraordinary" decline in demand from China. This news comes after Apple adjusted its revenue estimate for 4Q 2018, from the previous $89 billion to $84 billion.


Among them, TSMC, the core supplier of Apple's A-series chips, dropped its revenue forecast for the first quarter of 2019 at the latest earnings conference, which is expected to fall by 22%. The company said that high-end smartphones have seen a "sudden drop in demand" and blamed the slump in revenue to the US-China trade war and economic uncertainty.

Nidec, another Apple supplier that supplies the iPhone's vibration motor, has a similar situation. The company cut its 2019 full-year revenue outlook ""We have faced extraordinary changes," Nidec Chairman Shigenobu Nagamori told reporters at a Thursday news conference as the company reversed a previous forecast of a record profit"

Multiple reports suggest that Apple asked its suppliers to cut iPhone XR, XS, and XS Max production by 10 percent for the next three months, mainly due to the impact of iPhone sales in Greater China. For this reason, Apple has taken a number of measures to awake the Chinese market.

Image Via The National

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