Pegatron chairman: iPhone 7 demand beating forecasts

“The head of a key iPhone assembler in Taiwan has hinted at better than expected demand for the latest smartphone offering by Apple Inc.,” Debby Wu reports for Nikkei.

“On the sidelines of 40th anniversary celebrations for Taiwanese PC company Acer Inc., Pegatron chairman Tung Tzu-hsien said consumers had demonstrated a willingness to buy next generation smartphones such as the iPhone 7,” Wu reports. “Tung said of the iPhone 7 range… that he remained ‘cautiously optimistic’ about sales while declining to discuss shipment numbers.”

“Tung’s Pegatron is a smaller competitor to Hon Hai Precision Industry, or Foxconn Technology Group, in the iPhone assembly market,” Wu reports. “The two share orders for the 4.7-inch iPhone 6s and iPhone 7, while Foxconn dominates assembly of the 5.5-inch iPhone 6s Plus and iPhone 7 Plus.”

Full article here.

MacDailyNews Take: On May 12th, Debby Wu reported for Nikkei that Apple’s iPhone would see “weak demand” due to a “lack of groundbreaking features for the upcoming iPhone 7.”

Now, all of a sudden, demand is “better-than-expected.”

What we wrote at the time in response to Nikkei’s “weak iPhone demand” report, in part: This “report” smacks of a plant designed to depress the price of AAPL. Plain and simple. And Nikkei seems to be the preferred place to do it.

Regardless of the news, positive or negative, take whatever Nikkei pukes out about Apple with much salt. (We’ve edited out the insipid negativity and anti-Apple bias peppered throughout Wu’s piece above.)

SEE ALSO:
Nikkei proclaims ‘iPhone 7’ Dead On Arrival; bemoans Apple’s ‘lack of innovation’ – May 12, 2016
Japan’s Nikkei, The Wall Street Journal blow it, get iPhone demand story all wrong – January 16, 2013
Did Apple reduce 4-inch Retina display orders due to improving yields? – January 15, 2013
Analysts: iPhone 5 demand ‘robust;’ ignore the non-news noise – January 15, 2013
Apple iPhone suppliers decline on report orders cut by 50% – January 15, 2013
Apple swoon erases $17 billion from stock market – January 14, 2013
Apple iPhone 5 production cut signaling a new product release? – January 14, 2013
Apple drops to 11-month low on old reports of component cuts – January 14, 2013
The strange math of Apple’s alleged massive iPhone 5 component cuts – January 14, 2013
UBS analysts: Apple iPhone component order reduction ‘old news’ – January 14, 2013
Apple pulls down U.S. futures – January 14, 2013
Apple shares drop below $500 after reported cuts in iPhone 5 parts orders – January 14, 2013

27 Comments

    1. You can believe anything you want but that still doesn’t change the fact of Apple being the easiest stock around to manipulate with negative rumors. It would never happen to Amazon or Alphabet. This is strictly an Apple value weakness. Meanwhile, the other tech stocks will continue to soar while Apple goes nowhere. Doom and gloom reports have become a constant with Apple stock despite a relatively low P/E and a stockpile of cash. I’d think it mostly has to do with Tim Cook’s incompetence in convincing investors Apple is a worthwhile stock to own. Apple being only able to rely on iPhone sales certainly doesn’t help shareholders at all.

      1. I’m not denying anal-cysts always paint a bad Apple picture when there is no bad picture to be painted in order to manipulate stock. It has nothing to do with Tim Cook or his CEO competence.

        When a company like Apple still keeps making amazing profits, is still the Number On company in the world, and has plenty of things they’re working on behind the scenes (like everyone else) it’s disingenuous to come to any competence conclusion about things you have no idea about. It’s only specious conjecture on you or anyone else’s part. A guess, probably a very bad guess at that.

        Apple makes money off a line of products and services. Perhaps you need to look at the competition who largely are one trick and one primary source of income companies (Google & Amazon). Assuming in Amazon’s case they’re making any money AT ALL. As far as SamSplode I don’t think Apple wants to also start making dishwashers, washing machines and microwave ovens.

        You proceed from a cup half empty premise. Things in most respects couldn’t be better, well except the Mac line but we have been promised new stuff soon and I hope they deliver.

      2. Many of apple’s offering are doing quite well. They are dwarfed by the iPhone, but there’s nothing to be done about that. There is nothing like that market. If you’re hoping for another product that will command those numbers, well, it’s not coming from Apple or anyone else. It is a unique phenomenon.
        The watch is doing quite well – for the watch market.
        The iPad is doing quite well – for the tablet market.
        Their services business alone is bigger than the large majority of the Fortune 500 companies.

        The phone makes everything else appear insignificant, but they’re not.

    2. When the idiots that sold on bogus weak iPhone 7 sales news ffind out they were duped, will they finally commit suicide and leave the picture?

      Likewise will we as a nation, after we dicover that Trump’s facts aren’t?

      1. Those two things don’t really connect. Don’t be too proud of the alternative. Hillary is just as bad in her own way. One of the most disgusting, bad available choices elections the U.S. has ever had. Trump has been touted to win by established election points accurate over the last 30 years but in any case I think we are looking at a one term presidency and at the end going “what the heck was THAT??!”

        1. I agree it is a bad analogy, and I personally wouldn’t wish suicide on anyone except maybe the candidates themselves.
          Hillary and Trump and both the most awful things that could possibly happen to our nation, especially at this time, with two different looking yet equally anti-American values, principles and policies. The only real choices we have who isnt a dushy lying idiot politician if we are honest with ourselves are Gary Johnson and Evan McMullin. At this point I am going with whoever could most possibly win, though I really favor McMullin.

        2. Peter, we have to disagree here.

          While I most adamantly am NOT a Hillary Clinton supporter, all you have to do is check the fact checking sites (and there are several that are reputable) s to see the difference in the relative percentage of times these two candidates tell the truth or lie. Yes, they both lie. However, one outright lies more than four times the relative percentage of times they speak as the other one. That’s pretty dramatic.

          And, I wish I could go into the legal/security details of why no one (other than the Republicans that want her tarnished at *any* cost) is going after Hillary Clinton for the email fiasco. (And yes, I believe she was stupid beyond the pale to do what she did.)

          It will be interesting this evening if the moderator of the debate calls each candidate on any lies or misrepresentations. He should. I hope he does. It would make for a much interesting debate.

          Now, my apologies to all. I’ve spent way too much time on politics and not on Apple or Apple related topics.

    3. Bottom line: Nobody knows how well sales are going but Apple. We will find out in the next quarterly earnings.

      What you can do in the meantime is observe people and see if they’re using the device. You can also observe if there are any line ups at Apple Stores, etc. So far, I have seen no line ups in the large city in North America that I live in.

      You can also ask employees about demand as well.

      As an iPhone 6 Plus owner, I have no reason to buy the iPhone 7. It just is not compelling enough to buy over what I have.

      1. Lineups at an Apple Store are no longer a barometer of iPhone sales. people can get them in many other ways, or simply wait until the initial rush is over (like me). I have an iPhone 6 Plus as well and the iPhone 7 Plus is definitely a compelling upgrade what with twin lenses and 4K ability not on the 6 Plus and if you’ve tried a 7 you’ll see an enormous speed and response difference.

        But I would completely understand not upgrading and waiting until the iPhone 8. I am a camera dude so gotta have the 7. But if I wasn’t I might wait too.

        And yes the next quarterly results will tell the tale and probably a spectacular one at that.

      2. You’re obvioously not interested in the amazing new camera that the 7 an even more amazing one that the 7 plus offer, or advantages most heavy users are given by the blazingly fast new A10 processor iPhome 7 offers just to namea few. So stay behind.

        IPhone’s camera is the world’s most popular camera and thev7’s new cameras are getting rave reviews from professional photographers world wide.

  1. The tech media’s biased iPhone 7 narrative is helping AAPL now… 🙂 It’s the opposite of intentionally setting unrealistic high expectations for Apple, and then reporting that Apple failed to meet them.

  2. Wow! So I guess this refutes that non-published, non-confirmed report from some obscure service nobody has heard of. Many financial news aggregators were gleefully touting that very questionable report yesterday. This was responsible for a deep sell-off in AAPL.

    And since this new statement is from a company that actually assembles the devices (which is almost like a statement from Apple themselves) does this mean the stock will rally 5% on Monday?

  3. When has any Android phone had the kind go “ground breaking features” (which should be written as “paradigm thunder lightning bolt”) these doofuses expect out of an regular iPhone upgrade?

    Reminds me of a film or TV director saying when asked his opinion “I’ll know it when I see it, but in the meantime I have no frikkin’ clue.”

  4. Something is very wrong. The pundits insisted that iPhone 7 would be boring, lack breakthrough innovation, and at best play catch-up with their rivals. Why then such high demand for iPhone 7? Don’t consumers pay attention to the wisdom of the pundits? The Steve Jobs RDF doesn’t work any more—or does it?! Maybe when they get their units home and start using them they’ll realise there’s nothing really new there, and suffer buyer’s remorse. I fully expect the next news cycle to be stuffed with stories of disappointment, high return rates, and a new Watergate scandal, proving that Apple’s claims about water resistance were all wet.

    The pundits are seldom wrong, just misinterpreted.

  5. And they honestly think their home company, Sony, is any better? Those racists used and abused Michael Jackson just for his money, and after he died, milked even more from his unreleased joints. The worst part of it was that they used his unreleased music to sell that Fragmandroid rip-off Xperia phone! They sold out his creative “Xscape” pieces just to cash in on the Xperia name. Apple would never do this. The guys at Nikkei need to look at how corrupt their local companies are before bashing foreign companies that actually make quality.

  6. Another marketing trick from Apple.

    Forecast low so your sales are, “beyond forecast!!”

    It’s like lowering the bar for kids in high school where if you can add 2+3 =7, then you’re a genius and your school can haver a 100% graduation rate.

  7. If there are 500 million iPhones currently in use then judging by the activated numbers there have been around 20 million iPhone 7 and 7+ phones turned-on over the last nine days. This is around 33 percent higher than the first nine days of 6 and 6 Plus sales. If there are 600 million iPhones in use then this year’s 7/7+ usage is 60 percent higher than the 6/6 Plus.

    At face value, these estimates don’t explain the complete demand picture because the total number of phones activated up to this point represents the number of devices Apple produced for launch, but the following personal metric might be a hint that demand is increasing: This year I ordered on preorder day and was quoted a November delivery date. Two years ago I ordered about three weeks after the preorder date and was quoted a November date. In both years the phones I ordered were “supply constrained”. If Apple has already delivered significantly more phones than in 2014, and the amount of time between my order date and delivery date is significantly longer this year compared to ’14, then it seems like demand is much higher this year.

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