Apple's iPhone production cuts send part suppliers reeling

Apple's iPhone production cuts send part suppliers reeling
Both second and first-tier Apple analysts have trimmed their iPhone sales forecasts on account of the order cuts that are apparently going on at suppliers. They have revised their Apple stock price suggestions down as headwinds from the US trade war with China, currency fluctuations, or simply people's renewed preference for older, cheaper iPhone models are taking their toll on Apple's supply chain.

The iPhone XR sales predictions from famed analysts Ming-Chi Kuo were just revised downwards by the whopping 30%, for instance, and many other research shops have confirmed the production order cuts based on their supply chain sources. That same supply chain is now "shocked" by the decline in Apple orders, reports Korean media, as for some makers of semiconductors, displays, camera modules, flexible printed circuit boards and batteries for the new iPhones, that represents half of their business.

Thus, revenues are being revised down at LG Innotek, Samsung's Display, Electro-Mechanics, and SDI subsidiaries, as well as small suppliers like BHI and SEMCO. LG Innotek, for instance, hit a 52-week low for its shares today, on the heel of Apple's iPhone production cuts. The solution that industry insiders are proposing? Diversification away from Apple and Samsung into supplying parts for Chinese smartphone makers, but that is going to take a while to hold.

Related phones

iPhone XR
  • Display 6.1 inches
    1792 x 828 pixels
  • Camera 12 MP (Single camera)
    7 MP front
  • Hardware Apple A12 Bionic
    3GB RAM
  • Storage 64GB, not expandable
  • Battery 2942 mAh
  • OS iOS 13.x

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