Strong growth by Apple's supply chain points to improving iPhone sales

Strong growth by Apple's supply chain points to improving iPhone sales
During a year that has seen sales of the Apple iPhone struggle globally, there are subtle signs that the device is making a comeback. JP Morgan analyst Samik Chatterjee sent a note to clients today about the performance of a group made up of companies that supply Apple with parts for the iPhone. In June, for the fourth consecutive month, this group saw it's aggregate revenues rise year-over-year. Last month's rise was 6% compared to May's 9% hike and a large 10% increase recorded for April. The analyst said that for the first half of the calendar year, the revenue from this group rose 12% over the same period last year, and 4% over the first 6 months of 2017.

You might be wondering what this data is telling us. According to Apple Insider, Chatterjee pointed out that this so-called iPhone Supplier Tracker often moves in tandem with iPhone revenue growth. The analyst says, "We believe the monthly supplier revenue trends are supporting our belief that iPhone revenue headwinds are abating despite concerns driven by the uncertainty around the [China] trade stand-off." That is Wall Street lingo that when translated means that sales of the iPhone are picking up. JP Morgan expects Apple to sell 183 million iPhones for the calendar year 2019.

Chatterjee also expects Apple to start moving production of its devices, including the iPhone, out of China. This could prevent Apple from worrying over further trade-tensions between the U.S. and China, but could also help the company escape paying the higher wages that Chinese assembly line workers are expected to receive eventually. And while the analyst says that moving production could take years in order to train a large group of new workers, Apple also will have to rework its supply chain as well. While India and Vietnam are the two frontrunners to replace China, the former now has its own trade issues with the U.S.


We are probably just seven to eight weeks away from the unveiling of the 2019 iPhones and the biggest cosmetic change to the new models will be seen on the back of the phone. Based on renders, in the upper left corner of the rear glass panel, Apple is mounting a square camera module that has not been universally praised. The iPhone 11 and iPhone 11 Max will have three cameras in the module (expected to include a 12MP primary, 12MP telephoto and a new 12MP wide-angle camera with a 120-degree field of view) while the iPhone 11R will have two cameras in the square housing. Inside, the new units will be powered by the 7nm A13 SoC and could offer reverse wireless charging. Similar to PowerShare on the Samsung Galaxy S10 line, this feature will allow users to turn their iPhone screen side down and use the back as a wireless charging pad. This can be used to charge the AirPods carrying case, the Apple Watch, another iPhone or any compatible handset. Because the host phone's battery is used in this process, the 2019 iPhone models are expected to have larger batteries inside.


The 2020 iPhones will be redesigned. We could see three phones with OLED panels measuring 6.7-inches, 6.1-inches, and 5.4-inches. There will be smaller notches and two of the models are expected to support 5G connectivity. The A14 SoC could be built using the 5nm process; this means that more transistors will fit inside allowing the chip to be more powerful than its predecessor. Early talk suggests that there could be a 15% improvement in performance. And a Time of Flight (ToF) sensor could be included with the rear-facing cameras on next year's iPhone. This measures the time it takes infrared beams to bounce off the subject and return to the phone. The data is used for more accurate depth mapping to provide improved bokeh effects on portraits. It also could be used to add a rear-facing Face ID feature to the 2020 iPhones.

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26 Comments

1. sgodsell

Posts: 7207; Member since: Mar 16, 2013

Okay if there is now great iPhone growth, then why did Apple pay Samsung a fee for unused AMOLED displays to the tune of $770 million dollars?

5. oldskool50

Posts: 1323; Member since: Mar 29, 2019

I was gonna say the same. PA only half posted the story about Samsung asking Apple to pay for those displays they made. Like I said before, when an OEM makes a part for Apple, it can't be used anywhere else and thus if Apple signs a deal and says I need you to make a certain amount, then Apple gotta pay even if they don't sell them. I think this is also why, Apple may use the same generation of hardware foe 2 or 3 phones, because they order so much to get cheap as possible because they always need custom stuff which cost more to make. Like it costs more to make a non-standard resolution display vs a standard one.

10. sgodsell

Posts: 7207; Member since: Mar 16, 2013

Another thing that is reveling is "the performance of a group made up of companies that supply Apple with parts for the iPhone.". And I bets you any money most of those companies also supply other smartphone OEMs as well. What would be the most reveling is how many new iPhones have been sold vs the old iPhone models. But alas Apple doesn't want to give those numbers out.

8. whatev

Posts: 2199; Member since: Oct 28, 2015

I love how butthurt and affected you are, it makes me so happy :)

9. oldskool50

Posts: 1323; Member since: Mar 29, 2019

Who? You? Because I have never gave a crap about sales. Sales have zero to do with my purchase. I have never bought a product because of low nor high sales. In fact, with the exception of a Nokia phone I once had, none of the phones I ever owned were huge sellers based on today's standards. In fact the most sold phone I once own was the Moto Razr which sold 50M in a single year. It took Apple up until the iPhone 4 to sell that many phones at once. Since Apple has never sold more phones than either Nokia or Samsung, and never will sell more phones than Samsjng; o have zero compelling reason to care. What I do care about with Apple especially is because the iPhone is an iconic device, for what it costs it should be equal or better than phones that cost 1/2 its price and its not. For me that very disappointing.

11. whatev

Posts: 2199; Member since: Oct 28, 2015

Techie I wasn’t talking to you, generally I try not to talk to psychopaths and criminals

25. oldskool50

Posts: 1323; Member since: Mar 29, 2019

Pot meet kettle!!

13. iloveapps

Posts: 855; Member since: Mar 21, 2019

Techie is so disappointed in every apple’s product. He’s number 1 troll in every apple’s article. He is so sad that many people still use iphones and his Sammy is for poor people who can Only spend $200. Just look at the OS of Samsung, its so cheap even the icons.

14. stferrari

Posts: 51; Member since: Dec 15, 2014

Almost histaricly funny, Almost........If ignorance is bliss.....most Apple fans are reeeeeeaaaaaallllyyyy blissful

26. oldskool50

Posts: 1323; Member since: Mar 29, 2019

I don't give a sheit about what phones people buy. Why do I care what phone you own? I like iPhone too. I'm just not stupid over them like you. The vast majority of peopel in the world aren't rich. So they can't buy iphone or Samsung top phoens even if they wanted too. Mad...really? I don't have to be mad when I know I have a better phone that you and I paid the same price as you did. No matter how many phones Apple sells, it will always be less than what Samsung has sold. That is a FACT that will never change. So I could care less how many phones either one of them sell because sells don't benefit me. They don't benefit you either. You're only holding on to them because you have nothign else. Apple seeks less phones than Samsung dude, yet i don't throw sales in your face. I don't troll like you. I state facts and I here to keep fanboy idiots in check.

12. iloveapps

Posts: 855; Member since: Mar 21, 2019

Ur just a butthurt android that only have one thing in mind. Apple is declining sales. Your just like analyst, idiot and stupid.

19. darkkjedii

Posts: 30966; Member since: Feb 05, 2011

Do you even grammar bro?

18. mackan84

Posts: 375; Member since: Feb 13, 2014

Because it didn’t say that iPhone XS/Max sold greater? They have a couple of more models that isn’t amoled.

2. Whitedot

Posts: 771; Member since: Sep 26, 2017

At the current Iphone price do not expect any growth. All points data point to weaker and weaker sales. Apple did not changed so the the world didn't.

3. ahmadkun

Posts: 563; Member since: May 02, 2016

Is this growing because I bought used iPhone 7 last month?

4. TBomb

Posts: 1394; Member since: Dec 28, 2012

183M for an estimate is still a 15% decrease from last year according to Statista. That is far from what I would consider a strong growth

6. Mike88

Posts: 327; Member since: Mar 05, 2019

Don't cut the prices

7. oldskool50

Posts: 1323; Member since: Mar 29, 2019

They should, but they won't.

16. BigVanVader

Posts: 49; Member since: Jan 01, 2016

Good news for Apple

17. obedchuni

Posts: 332; Member since: Jun 16, 2014

Is that techie back that son of a google and Samsung.

20. darkkjedii

Posts: 30966; Member since: Feb 05, 2011

All I know is, the 2019 iPhone can sit and rot on the shelf, as far as I’m concerned, but the 2020 model has my interest.

21. Vancetastic

Posts: 1103; Member since: May 17, 2017

I haven’t seen anything compelling enough on these to upgrade from my X. This could finally be a Samsung year for me...

22. darkkjedii

Posts: 30966; Member since: Feb 05, 2011

I have no plans on buying another 4G phone. Those who want them, great, but my next Note and iPhone will 5G. I’m considering skipping this years Note as well, cause my Note 9 is performing great, and I really don’t see the need to get rid of it. 2020 is looking like my next purchase year.

23. Vancetastic

Posts: 1103; Member since: May 17, 2017

Agreed. I’m attracted to the s10e, size wise, so I’m anxious to see the follow up. If I go big, I’m going Note.

24. darkkjedii

Posts: 30966; Member since: Feb 05, 2011

Only Notes and IPhone Max’s for me.

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

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