Apple’s part suppliers worried that high iPhone prices can hinder their Q4 results

Apple’s part suppliers worried that high iPhone prices can hinder their Q4 results
People looking to buy a new iPhone are not the only ones unhappy with the high prices of Apple’s smartphones. Part manufacturers that supply Apple with components for its devices are also concerned about the price tag they come with.

While companies working with Apple usually have a hard time delivering enough parts to meet the demand, because the new models share some parts with the previous generation, they are now looking for high iPhone sales to meet their quarterly predictions. After seeing the starting prices of Apple’s new iPhones, particularly the XS and XS Max (starting at $999 and $1,099 respectively), the manufacturers are starting to doubt their expectations will be met. Another factor that’s negatively contributing is that the cheapest iPhone XR will go on sale towards the end of October. This leaves only two months for companies to feel the bump in revenue from its sales that they can add to their Q4 financial reports.

Validating the suppliers’ concerns to an extent is the recently released report stating that preorders for the iPhone XS haven’t been as high as predicted and customers are more interested in the two other models. Yet another reason for the potentially slower start of the new lineup, according to analysts, is that Apple reduced the prices for its iPhone 8 and 7, giving consumers more choice if they want a new iPhone, but don’t feel like paying big bucks. For those making parts for the new models, that's not good news.

Naturally, the most affected companies will be the ones doing the most work for Apple, in this case Foxconn Electronics and Pegatron. Their revenue is tightly connected to the performance of iPhones on the market and not hitting their targets for the fourth quarter of 2018 certainly won’t make investors happy.

Exactly how well the new iPhones will sell is still too early to say, considering the first orders will be delivered on September 21st, but it’s safe to say that the whole smartphone industry will keep a close watch on them.

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iPhone XS
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  • Camera 12 MP / 7 MP front
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iPhone XS Max
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14 Comments

1. shiv179

Posts: 125; Member since: Aug 08, 2012

Flagships are getting horribly expensive, from both the Apple and Samsung camps

3. notfair

Posts: 680; Member since: Jan 30, 2017

Huawei is not far behind, I am pretty sure the new Mate 20 Pro will be 999$

6. scarface21173

Posts: 631; Member since: Aug 17, 2014

Carriers in the uk have started selling iphones on 36 month contracts to shift them. It was always 24 month.

11. Atechguy0

Posts: 918; Member since: Aug 03, 2018

Oh that's what everyone is exactly looking for, a mortgage payment style when it comes to your smartphone.

12. Atechguy0

Posts: 918; Member since: Aug 03, 2018

36 months is like a jail sentence.

9. L0n3n1nja

Posts: 1511; Member since: Jul 12, 2016

Google, LG, and Sony followed their lead.

2. NateDiaz

Posts: 1082; Member since: Mar 03, 2018

Everyone's worried until Apple releases sales number. Best Selling iPhones one more time.

4. notfair

Posts: 680; Member since: Jan 30, 2017

I would not worry, the fans will keep buying them for the social status.

5. Vokilam

Posts: 1022; Member since: Mar 15, 2018

Yep, The only ones that say that, are the ones that actually believe iphones enhance social status.

8. Humanoid

Posts: 1226; Member since: Dec 11, 2017

Trust me , this happen.

10. worldpeace

Posts: 3091; Member since: Apr 15, 2016

Not in most part of this planet

7. aegislash

Posts: 1434; Member since: Jan 27, 2015

Or they could simply be buying the device because they enjoy the iOS ecosystem, but ya know....social status and all that jazz you guys like to spew.

14. FluffyBled unregistered

Trust me, most people can't even tell the difference between iOS and Android ... also a mere fraction own both an iPhone and another Apple device to "enjoy the ecosystem". That being said ... there are people who indeed enjoy Apple products and the ecosystem, but they're a minority. Most of them do believe the iPhone to be a status symbol.

13. sissy246

Posts: 6950; Member since: Mar 04, 2015

Just the teens that think it is cool.

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