Apple suppliers are not so sure the iPhone XR will prove a smash hit

Apple suppliers are not so sure the iPhone XR will prove a smash hit
With only three days to go until the highly anticipated iPhone XR pre-order start and an extra week until actual sales are set to begin, the reports and forecasts are rapidly piling up in connection with both Apple’s low-cost 2018 model and the company’s handset numbers on the whole.

While most analysts and industry pundits seem to believe the $749 and up LCD phone with a single rear-facing camera will sell like hotcakes, helping the 2018 lineup improve on the X, 8, and 8 Plus performance from last year, certain “supply chain sources” are keeping their skeptical hats on.

According to Digitimes, a publication with a mixed track record when it comes to quoting inside information and industry gossip, a number of “Taiwan-based suppliers engaged in the Apple supply chain” are still “cautious about orders for the new iPhone series for the rest of 2018.”

This caution may have more to do with weak demand for the already released iPhone XS and XS Max than any predictions of sluggish XR sales, but either way, companies like TSMC are apparently likely to generate “lower-than-expected revenues in the fourth quarter.”

The leader of the global independent semiconductor foundry market remains highly dependent on the success of Apple’s smartphones and tablets for its own prosperity, handling the making of the A12 chip while also gearing up to produce the next-gen A13 SoC.

Largan Precision is another major Apple supplier concerned about current orders, which are likely to negatively impact the October and November shipment totals of its camera lens components.

Of course, no one can really know how a phone will do before it’s even put up for pre-order. For the time being, it’s crystal clear that the iPhone XS and XS Max have failed to set the world on fire, which is putting quite a bit of pressure on the iPhone XR to “stimulate the overall demand for iPhones.”

source: Digitimes

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9 Comments

1. whatev

Posts: 2421; Member since: Oct 28, 2015

This back and forth news, c’mon keep them coming every year, they’re not boring at all *rollseyes

2. midan

Posts: 3124; Member since: Oct 09, 2017

yes, like i said same pattern every single year :D

3. whatev

Posts: 2421; Member since: Oct 28, 2015

I really don’t understand the purpose of these news every single year, I guess they are supposed to manipulate apple stocks but for the regular user they’re really boring, the pattern repeats every year

8. Atechguy0

Posts: 918; Member since: Aug 03, 2018

The IPhone XR is really low spec, yet Apple and other sites like this one are saying the XR is going to be Apple's best seller. Well considering this is Apple's cheapest and newest smartphone for 2018 at $750 USD, or $1030 CAD, then it makes sense, especially when it's your only option if you want a new smartphone with iOS. Other than buying an older IPhone. It's no wonder why Apple didn't make an iPhone SE, because Apple wants to raise the prices.

4. tokuzumi

Posts: 1961; Member since: Aug 27, 2009

This is more of the "sky is falling" type of articles. It reminds me of the all the articles saying the iPhone X was not selling, and no one wanted it, suppliers have this huge backlog of parts due to poor sales. Then Tim Cook says the X was one of their best selling phones, and the entire internet turned on a dime saying "iPhone X best sales success ever!" Tech analysts are the meteorologists of the tech world. They make a lot of claims, but are usually wrong.

5. Peaceboy

Posts: 640; Member since: Oct 11, 2018

Stupid analysts trying to manipulate stocsks. When will they ever learn that apple will still have the best profit especially that services and other products are doing well. Not to mention that many iphone users opted for Xs Max with bigger storage. I really love my iphone Xs Max. Hopefully next year apple will provide some feat of the ipad.

6. lyndon420

Posts: 6883; Member since: Jul 11, 2012

Was anyone really expecting anything magical from apple this year? Or any OEM for that matter??

7. alligator

Posts: 107; Member since: Jan 09, 2016

This is the case not only with Apple but also with Samsung. If you release one very different phone then you shouldn't expect to sell more when you release the second revision of a same phone. S8 was great but the sales for S9 are not the best ones. X was great but how to they expect to sell XS better than its predecessor.

9. midan

Posts: 3124; Member since: Oct 09, 2017

"8 was great but the sales for S9 are not the best ones. X was great but how to they expect to sell XS better than its predecessor." only fraction of iPhone users bought X. So XS have good chance to sell more.

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