Lower Apple iPhone sales are having a negative effect on suppliers

Lower Apple iPhone sales are having a negative effect on suppliers
During Apple's fiscal third quarter, the company sold 40.4 million units of the iPhone. That was less than the 47.5 million units sold during the same quarter one year ago. For Apple, that was the second consecutive quarter that saw it report a decline in year-over-year iPhone sales. Prior to those two three-month periods, Apple had never had to report a quarterly decline in iPhone sales on an annual basis.

The iPhone sales slump is affecting other companies besides Apple. Japan Display, which gets half of its revenue from Apple, recently asked the Japanese government to help bail it out after revenues cratered from declining iPhone sales. Another company heavily tied to the fortunes of the iPhone is contract manufacturer Foxconn. One of the companies that assembles the device, Foxconn reported that Q2 profit declined to $563.7 million USD from the previous year's $818.5 million USD total. That is a decline of 31% year-over-year.

Despite all of the doom and gloom that surrounds Apple, with many analysts saying that iPhone sales have peaked, the company itself remains very optimistic. Orders for 72 million to 78 million iPhone 7 units were placed by Apple for the fourth quarter. Even though that period includes holiday shopping sales, and starts just a couple of weeks after the launch of the new iPhone models, Wall Street had expected the tech titan to order only 65 million units for the three month period from October through the end of December.

source: BGR



1. strawhat67

Posts: 66; Member since: Jul 16, 2015

design of upcoming iPhone is worse than last years Galaxy s6 edge

3. maherk

Posts: 7007; Member since: Feb 10, 2012

S6 Edge? Lol I understand that design is a personal matter, but you have to be crazy to compare the design of the Edge to an iPhone.

8. darkkjedii

Posts: 31534; Member since: Feb 05, 2011

He called me back, asking me to meet him at Walmart to buy a charger lol. I didn't even bother my brother. I'll pass...thanx for the advice.

96. maherk

Posts: 7007; Member since: Feb 10, 2012

Anytime my friend. And yeah, as I told you yesterday, there is something fishy about his ad.

111. sgodsell

Posts: 7533; Member since: Mar 16, 2013

Apple has to change the resolution of their iPhone 7/6se. If they release a phone with the same HD display as last time. Then Apple deserves to see a decline. No other flagship device on the market will sell for their flagship price, and offer only a low resolution HD display. Yes I know Apple has a 5.5" display that has full HD. However that cost even more. But it's not like Apple can't have a full HD display in a 4.7" display. Especially when other OEMs have done this in the past. If Apple does come out with a HD iPhone again, then they want to continue to show the world their benchmarks when they compare their HD iPhone to QHD phones. Oh, and still maximum their profits for giving users once again lower tech.

124. darkkjedii

Posts: 31534; Member since: Feb 05, 2011

Why on earth, is that even remotely a response to my post? Who the hell cares dude, I'm not even buying an iPhone this rear.

156. sgtdisturbed47

Posts: 969; Member since: Feb 02, 2012

Your mistake is thinking that more than 1% of people care about screen resolution on a smartphone. In 6 years of dealing with smartphones, I've never heard one customer mention screen resolution at all, much less a reason to buy or avoid buying a device. On a 5.5" device, QHD is pointless. On a 27" monitor sitting 2 feet away, you still can't see individual pixels. Note7 has the option to run the display at FHD instead of QHD to save battery life instead of shoving a fatter battery into it. A clear admission that QHD isn't the best option for battery life.

113. janis

Posts: 397; Member since: Mar 10, 2014

edge is way better design that iphone

4. fyah_king unregistered

Lol, the iPhone 6 and 6sss pluses ss are the ugliest phones in history because of the gigantic bezels.

13. darkkjedii

Posts: 31534; Member since: Feb 05, 2011

Green thumb bait.

16. kiko007

Posts: 7520; Member since: Feb 17, 2016

That's all they're good for man. They circle jerk each other like there's no tomorrow. I just hope it comes in Space Black (Just call it black Apple!) and I'll be straight :D.

19. neela_akaash

Posts: 1239; Member since: Aug 05, 2014

Atleast Apple won't die because they have some devoted fans like you....

21. kiko007

Posts: 7520; Member since: Feb 17, 2016

No.......Apple's not gonna die because they actually make money off their products. Something MOST Android vendors do not :D.

24. neela_akaash

Posts: 1239; Member since: Aug 05, 2014

Same situation was with Nokia a decade ago.....

55. kiko007

Posts: 7520; Member since: Feb 17, 2016

Actually it isn't -_-......and the comparison is juvenile at best. Take a look at the market cap for both companies at their supposed "peak". That's all you need to know my friend. Not to mention it took a innovative product in the first iPhone to truly dethrone Nokia and BB. How many companies are developing an entirely new way to use our phones? None you can think of right? K then :D

42. trojan_horse

Posts: 5868; Member since: May 06, 2016

No, it's because Apple actually makes money by ripping off and dodging tax.

54. kiko007

Posts: 7520; Member since: Feb 17, 2016

They pay more taxes than every citizen in America combined. Then again, they must've ripped you off Lol :D. I mean, why else would you be this butthurt over a company's success?

69. RebelwithoutaClue unregistered

Apart from the fact how much taxes they pay, it's not like Apple is the only one using the double Irish with a Dutch sandwich construction. While not really ethical, it is legal and as long as those countries (sadly enough my country too) provide the means, you would be stupid as a big company not to use this benefit.

72. kiko007

Posts: 7520; Member since: Feb 17, 2016

Excellent point :D.

107. tedkord

Posts: 17456; Member since: Jun 17, 2009

I'd like to see a citation for that. Last I saw, US citizens pay over a trillion dollars in federal income tax per year, which is much more than Apple's revenue, let alone their taxable profits.

149. Macready

Posts: 1829; Member since: Dec 08, 2014

He's good at making up numbers.

90. dazed1

Posts: 806; Member since: Jul 28, 2015

LOL only isheeps care about how much units some vendor sold, and not what product they are getting for their money.

22. AlikMalix unregistered

Kiko, Dark, honestly I'm really happy apples sales are sliding. Before you joined kiko, I posted a few times how great it would be if Apple slid dramatically - not the little slow downs we see before the new iPhone is released - I mean year over year declines (big ones). I discussed this with one of the android guys a wile back, that this incremental crap is going continue to happen to all devices unless someone can point to a new product like Apple did with the OG iPhone. 2016 for those people like us (android and iOS, and BB, and Wp fans) is really really boring. The os's and devices are so incremental in offerings its not even fun to argue or have a fan war. Samsung improved their design when the went spiraling downward about a year and a half ago - and they improved their design. Imagine same crap happened to Apple - I bet if anyone can change the industry again it's Apple. But under cookie Timmy and his new buddy Johnny-lazy-ass. No one at the helm to push it. Timmy only understands numbers - well let's kick him in the ass with really low ones - I feel giddy when I see red in market projections for Apple - the board will push Tim or push him off the throne. (I vote for the bye-bye). Long story short - Apple is disappointing this year (so is everyone else) but I'm an iPhone fan - I need iOS device that Steve would have made - not incremental bs.

37. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung didn't lose that many sales. They lost like 5% when it was all said an done. They still sold over 300M phones. Apple went from finally reaching 220M and now they are going to fall to below 190M. That is a much steeper drop vs your Samsung claim. However, Samsung fall in sales wasn't for a lack of trying. The S5 and Note 4 didn't do as well as expected and not releasing the Note 5 in Europe was a bad idea. Apple repeating the same crap year after year S why they are falling from grace. It is for a lack of trying. Once you fall, ain't no getting back up. Samsung didn't fall, they slipped. Apple is falling.

40. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Doesn't matter, it depends on how they react to it. The good thing Samsung did was solidify their products with in demand features and quality. How Apple reacts will make the difference. They can either try to make money by offering the same thing with gimmicks like force touch, or they can take a margins hit for volume by adding valuable things like AMOLED.

108. tedkord

Posts: 17456; Member since: Jun 17, 2009

But Samsung's financials dropped more dramatically, because their higher profit devices weren't selling. And, it did give them a boot in the butt.

39. darkkjedii

Posts: 31534; Member since: Feb 05, 2011

Dude, I 100% agree with you. I was telling someone the other day, Samsung leaned to be great from Apple, now Apple need to learn to be great from Samsung. That's real talk. Samsung saw an issue, started taking chances, and it paid off. Apple is still pretty much resting on its laurels, and needs a good solid kick in the ass. I too am an Apple user, and I wanna see more chances taken. It's time to go back to the lab. The iPhone needs a serious makeover, and some serious cutting edge features thrown in. I get sick of having to leave YouTube, to check a Facebook post (multi window), I hate having to use my finger to write on a pic (which only works in email, and notes) without a third party app, Apple Pencil. Apple should take Samsungs approach, throw a lotta stuff against the wall, and see what sticks. This drip feeding approach sucks to me. I actually bought my first Note outta curiosity, and got blown away, then came the multi window update, and I was hooked. It's time Apple.

41. Finalflash

Posts: 4063; Member since: Jul 23, 2013

You say this but you only do so with half honest words. Push comes to shove, all of you iFans start defending the remedial crap Apple does for pride and that's it. In the end, the real protest that matters to Apple is money, and you people still buy the product no matter how pathetic so why would Apple listen?

44. trojan_horse

Posts: 5868; Member since: May 06, 2016

Right, FinalFlash! Them iFans complain about Apple's incremental upgrades and lackluster features, and also say Apple needs an ass kick for low sales to push them to beef-up the iPhone's features, yet they keep buying the same devices they pretend to complain about incemental BS. Such hypocrisy.

45. darkkjedii

Posts: 31534; Member since: Feb 05, 2011

Keep trolling me, and I'll keep enjoying my tech...both Samsung, and Apple. Now "half honest words" that. Can't wait to get the piece of blue coral heaven.

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.