Apple to ship up to 5 million iPhone SE units amidst a quarter of unusually slow chip orders

Apple to ship up to 5 million iPhone SE units amidst a quarter of unusually slow chip orders
Citing "industry sources", DigiTimes reports that Apple has slowed down its chip orders in the second quarter of 2016, compared to the same quarter in previous years. Despite the volume production of its new 4-inch iPhone SE and 9.7-inch iPad Pro devices, projected chip orders by Apple for the second quarter will only be slightly higher than those for the first quarter. Moreover, integrated circuit (IC) suppliers have hinted that chip shipments for the iPhone 6s and 6s Plus for the second quarter of 2016 will likely be half those shipped in the first quarter.

We also get to learn that Apple has reportedly targeted four to five million iPhone SE shipments for Q2 2016, meaning that, in all likelihood, shipments for the new iPhone SE will be unable to offset the fall in shipments for the iPhone 6s and 6s Plus devices in the second quarter. That's an interesting report, considering Chinese customers allegedly placed as many as 3.4 million pre-orders. Could more than half of the iPhone SE' sales happen in the Middle Kingdom? It's not impossible, although it will be a surprising turn of events!

A week after being put up for pre-order, the new 4-inch smartphone is being treated to a lukewarm response, compared to past iPhone launches. Its first first weekend online sales have been estimated at just 3%, compared to iPhone 6 launch. Our readers dislike the device's 4-inch display, deeming it too small for a comfortable experience. They, along with some high-profile executives in the industry, are also disappointed by its throwback design, which is a direct remake of the iPhone 5s'. 

Apple's chip orders will probably return to their usual high levels around or after the third quarter of 2016, which is when its next-generation iPhone (and probably Apple Watch) products will be released. From the company's perspective, the drop in chip orders reflects a predicted sales slump in March, which CEO Tim Cook announced in its financial earnings conference call this January. The first quarter of 2016 saw the first year-over-year decline since the original iPhone's release back in June 2007. Moreover, Apple forecast a revenue of between $50 to $53 billion, compared to $58 billion for the first quarter of 2015, which happens to be the company's first year-over-year revenue drop in thirteen years.

source: DigiTimes via MacRumors

Also read:

Related phones

iPhone SE
  • Display 4.0" 640 x 1136 pixels
  • Camera 12 MP / 1.2 MP front
  • Processor Apple A9 APL0898, Dual-core, 1840 MHz
  • Storage 128 GB
  • Battery 1624 mAh(14h 3G talk time)



1. xperiaZlover

Posts: 202; Member since: Nov 15, 2015

Wish iphone 5s, SE design is used in the iphone 7 not the 6s design with bezel less sides. SE/5s design on a 4.7 inch screen would be absolutely awesome.

6. sgodsell

Posts: 7369; Member since: Mar 16, 2013

When other OEMs can make a phone with much smaller bezels, and more screen, then why can't Apple. The other thing is people are already tired of Apples games of a 16 gb entry iphone. Sure you can pay more money for the more storage. But Apple likes to fleece its customers, especially when you need more entry level storage to start with. What has iOS not grown since the iPhone 5/5S. Not to mention a 12mp camera that shoots 4k. 16gb of storage is a disgrace. In Canada the 64gb iPhone SE is over $700.

8. Canaan

Posts: 351; Member since: May 25, 2014

It's also pretty bad that its screen resolution is lower than HD (it's 640p), so you won't even be able to experience HD video recordings.

13. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

Agree: every phone with less than 25 TB of storage (4 SSD SCSI of course) is a disgrace.

15. Ordinary

Posts: 2454; Member since: Apr 23, 2015

Yea he said that exactly, Hurt you are

18. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

I only need 16 GB but it is still a disgrace to have to buy a phone with only 1 EB of ram and a measly 16k display.

19. Ordinary

Posts: 2454; Member since: Apr 23, 2015

I need to only 16gb internal with 200gb micro sd. Seems about right

20. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

For a low level user as yourself it might be enough, fit a power user that needs speed, it's too little; a phone without 1 TB internal storage, 25 cores and 256 GB of ram is pathetic.

2. mercorp

Posts: 1045; Member since: Jan 28, 2012

Really another missed opportunity by apple. If they could tweak the iphone 7 design by slimming the bezels giving it more or less similar dimensions to the xperia z compact series while retaining a 4.7 inch screen, that would have been great.

5. bigdawg23

Posts: 467; Member since: May 25, 2011

There are a mass majority of cell phone users that could careless about bezels on the phone. I am more of a how the phone functions, last and overall size than bezels. I have a 6 Plus(Personal) and Note 4(Work) both phones have pluses and minuses. I work with a lot of people and friends with that solely care that the phone works and takes pictures. They don't use to its full extend. As for size, I know owners of iPhone 6/6S that wish they were 4" and not 4.7'.

3. Konkit

Posts: 19; Member since: Mar 23, 2016

it must be really bad if they did officially anounce their presales number :-/ and of course apple need to ship some million of this unit, since apple store around the globe need some supply ready at their store

4. nctx77

Posts: 2540; Member since: Sep 03, 2013

Well, Apple obviously placed these orders prior to the phone going on sale. Maybe they missed the mark. With 3.5 million already sold in China, they are probably already close to 5 million WW.

7. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

All they had to do was not be cheap. Also assuming that because 50% of your base still had 4" phones, didn't mean they still wanted to keep them. Maybe they want a larger iPhone, but not for $700. Every OEM has a 4.7-5.1" device that is $400 or less. Showing the iPhone 6S is simply way overpriced for what it offers. It should be no more than $499 tops with the 5.5" model being $599 at the most. Apple slapping their extra $100 Apple tax on their products will prevent people that actually want them from buying them because they cost to much. This is exactly what they get for being cheap and at least not taking this model and simply matching the latest model design language. Fool me once, shame on you. Fool me twice, shame on me! - Ex-President Bush.

9. dimas

Posts: 3367; Member since: Jul 22, 2014

I think the psychology behind releasing iphone se is make the people think that se 4" is awesome then when iphone 7 is released, the excitement over 4.7" will be greater and subconciously people will think that they're making a big technology leap again. Or maybe just some kind of conspiracy s**t, whatever you want to get puzzled with.

11. Canaan

Posts: 351; Member since: May 25, 2014

They claimed that they released the SE because there was still a market for small phones as evidenced by Apple selling 30 million of their 4 inch models in 2015.

12. dimas

Posts: 3367; Member since: Jul 22, 2014

Come to think of it, this is also the 2nd time in history that apple released a non-flagship phone that is inferior to their last flagship. 4, 4s, 5s, 5c, 6, 6s, se. People were disappointed with 5c then 6 got people's attention after that depressing 5c launch. If that's not marketing pattern, I don't know what I want to believe in mainstream media anymore.

14. AlikMalix unregistered

Who exactly was disappointed by 5c? The techie junkies like us? The people that wouldn't buy it anyway? 5c served it purpose well - and it sold extremely well - much better than most popular android flagships. It's the same old argument over and over again - if you don't like it, or it doesn't suit you - does not in anyway means it's a bad device or any other subjective argument you can throw at it.

16. jeroome86

Posts: 2314; Member since: Apr 12, 2012

It was probably a fail by Apple standards but a lot of Androids would love to have those sales. I still see a lot of 5c's in the the wild. Maybe Apple just testing the market to see if there is still a need for small phones.

10. Micah007

Posts: 266; Member since: Oct 09, 2014

4" is waaaaaaayyyy too small. Good for those using a phone for just a phone but not much else for an enjoyable experience.

17. Sondae

Posts: 291; Member since: Jan 02, 2013

Iphone SE is like a new phone but same old parts - ifixit. Apple wants to keep iphone 5s alive coz some people still using it.

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