“Taiwan Semiconductor Manufacturing Company has been little affected by a cutback in chip orders for Apple’s new iPhones as many of its other fabless clients are queuing for its 7nm process capacity, according to industry sources,” Monica Chen and Willis Ke report for DigiTimes. “But most other iPhone supply chain partners are expected to see their revenues decline starting November on Apple reducing orders amid lackluster sales performance for its new devices, the sources said.”
“On another front, as Apple has reportedly enforced a second wave of order reduction in the wake of weaker-than-expected sales for its new iPhones, many other Taiwan supply chain partners are beginning to feel the pinch in November,” Chen and Ke report. “iPhone camera lens supplier Largan Precision, for instance, has estimated its November revenues will fall from October. Career Technology, a supplier of flexible PCBs for iPhones, have recently laid off 110 dispatched workers to cope with order cuts by Apple.”
Chen and Ke report, “An iPhone assembler has also advanced its workforce trimming project, seeking to reduce personnel cost and other expenses to counter the greater-than-expected reduction of orders.”
Read more in the full article here.
MacDailyNews Take: Do component order reductions necessarily equate to “lackluster iPhone sales?” No. Apple could have stockpiled components and have all they need as the new iPhone mix reveals itself. But, jumping to conclusions to form specious assumptions based on incomplete data is a useful, if deceitful, tactic for those who benefit from talking down Apple’s share price.
Don’t hate the manipulators, profit from them. – MacDailyNews, November 10, 2018
SEE ALSO:
In the darkest hour of Apple’s ‘white-knuckle period,’ some investors are loving it – November 21, 2018
Poor news curation at Bloomberg, CNBC, Reuters created misleading iPhone supply chain panic – November 19, 2018
WSJ: Apple slashes production orders for all three new iPhone models – November 19, 2018
Misreading Apple’s supply chain and iPhone XR demand – November 15, 2018
Apple: Ignore the noise – November 14, 2018
Dialog Semi says not seeing hit to demand from Apple – November 14, 2018
Don’t panic about iPhone sales just yet – November 14, 2018
Apple stock: This is not a repeat of 2015-16 – November 14, 2018
iPhone XR production cuts not due to soft demand – analyst – November 10, 2018
Apple’s Asian suppliers fall on report of canceled iPhone XR production boost – November 6, 2018
Nikkei claims iPhone XR production cuts, Apple stock drops over 3% – November 5, 2018
Uh, yeah, about those iPhone X ‘concerns’ from analysts: Never mind – May 1, 2018
Apple beats Street with best Q2 ever – May 1, 2018
Apple’s iPhone X isn’t selling well – or is it? – April 21, 2018
Apple’s iPhone X to be discontinued this year, analyst claims – April 20, 2018
Morgan Stanley: Apple stock may fall on ‘materially’ weaker iPhone sales – April 20, 2018
Apple’s iPhone X made 5 times the profit of 600 Android OEMs combined – April 18, 2018
Apple’s iPhone captured 86% of global handset profits in Q417; iPhone X alone took 35% of global handset profits – April 17, 2018
Bernstein: Ams AG is biggest winner in Apple’s TrueDepth Camera system – April 10, 2018
Apple’s iPhone X is the UK’s most popular smartphone – April 9, 2018
Apple’s iPhone X sales continue to disappoint, some analysts say – March 22, 2018
Ignore the iPhone X naysayers – March 10, 2018
Will the naysayers admit they were wrong about Apple’s iPhone X? – February 5, 2018
Do iPhone X sales spell trouble for Apple? – January 30, 2018
Apple supplier says report of iPhone X production cuts was overstated – January 30, 2018
Another January, another misleading iPhone supply cuts story from Nikkei – January 29, 2018
Apple stock drops after Nikkei report of iPhone X production cut – January 29, 2018
Reports of Apple cutting iPhone X orders make no sense – January 2, 2018
Apple stock tumbles on one poorly-sourced report of low iPhone X demand – December 26, 2017
Apple and suppliers shares drop on report of weak iPhone X demand – December 26, 2017
Nikkei: Apple to decrease iPhone production 10% in first quarter of 2017 – December 30, 2016
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
GASP! Wall Street and anal-cysts can be dishonest in the pursuit of personal gain? Hard to believe.
Holy Poop if people can’t tell that some groups are purposefully pushing information to Manipulate Apples stock price then they aren’t paying attention. I’ve never seen it this bad.
[“But most other iPhone supply chain partners are expected to see their revenues decline starting November on Apple reducing orders amid lackluster sales performance for its new devices, the sources said.”]
Pure horseshit article.
“Most” suppliers would be about 101 or more firms. NOBODY has reported supplier cutbacks at more than 5 firms and among them is Lumentum who lost sales to Finisar’s new Texas production facility.
Then there is the seasonal fact that March quarter sales average about 30% less than December quarter sales, and have for at least 8 years (since launch was moved from July to September).
These cutback reports come out every year and every year they have nothing to do with the December quarter.
Even though investors should realize this negative crap happens almost every year, it still works to squash Apple’s value into crap. This new narrative of how Microsoft is a better stock than Apple could be quite disheartening to many Apple shareholders. I don’t believe it (based on fundamentals) but maybe many see it as Apple no longer being worth investing in. I still see it as an opportunity for Apple to buy backs shares at a lower price and I hope I’m reading the situation properly. I’m certain there is going to be a decent outstanding share reduction by next month and that will be a good thing.
Riddle Me This: How can TSMC have little to no reduced orders for iPhone chips, but the suppliers all are crumbling?
That makes NO sense… TSMC is about the only factor to watch as Apple does all sorts of things with suppliers of other goods. Cameras, circuits, line production, it’s endless and impossible to track.
So a camera maker is slow? Does that camera maker make cameras for LG (the 5 camera per phone company) and thus had to can people, because no one cares about LG phones?
Yah, probably.
Is this mentioned? No. Of course not. It’s always written as if these companies have no other customers – which is total spin (AKA Fake News) as they have dozens of other customers. But no, it’s just Apple they supply and if their sales are down, it’s all because Apple if dying.
Something isn’t adding up. AT ALL
I know more people upgrading to new iPhones than I have seen in the past few years. My wife couldn’t even et the color of iPhone XS she wanted… Sold out…
My bro just bought a new iPad – can’t arrive until December 12th! Sheesh!
If Apple’s hurting I sure can’t see it. Seems to me they are building products as fast as they can to keep up with demand. Which is likely the case and these “hit hors” can go pound sand.
All signs are converging and point to a slowdown in phone sales. Too much smoke for fire not to exist. The latest most telling is component suppliers laying off workers. Now that Apple will be hiding unit sales numbers they can say anything at anytime and we will never know for certain to make a fair comparison. I can hear the spin from Tim now, we sold more phones than we expected last quarter. Without hard numbers to compare, who knows?
They are selling phone series 7, 8, X and the three newest models. To compare specs to price is a chore. No new small form factor entry level SE that is only two years old for small hands and pockets. Recall fanboys here saying if you want a smaller phone buy the 7. Like I’m going to pay $100 more than an SE for a four-year old phone? Puhleeze! That’s almost as bad as paying for an overpriced and underpowered sold as NEW five-year old Mac Pro at the same premium price. Totally unacceptable, Apple.
I doubt you will find a five-year old NEW SUV, truck or car at any dealership in the world. And if you do, they will lower the price to practically give it away.
Hopefully this supplier yearly chatter will pass and the quarter will be most profitable. But the feeling this year is palatable and different than I have read in 10 years, we shall see…
You made a good case but then you deflated it with that “we shall see” cliche caveat. Other cliche caveats are also available to the intrepid searcher: “Time will tell.” “Only God knows.” Seneca, a Roman statesman, is quoted to have said “Time discovers truth.”
The Apple Tree constantly needs pruning. They cut it yesterday, they cut it today and they’ll be cutting it tomorrow.
It’s not as though it’s a secret how iPhone sales are slowing. Peak iPhone was predicted years ago. I suppose Apple is doing the best it can by trying to move to Services but investors don’t like it. Until Apple can design some new product that can be guaranteed to supplement iPhone sales, Apple shareholders are going to get screwed.
I hear Amazon has some new servers that are powered by ARM processors that are equal to or slightly better than Intel x86 processors. Maybe Apple needs to turn its A12 Bionic chip into something that can be used in servers. If Apple offered a new line of cloud servers to sell to companies with the power of an A12 Bionic, Apple could create another revenue stream from a component it basically already has.
In another scenario, Apple could start it’s own cloud business using its own servers that could match or beat any server currently on the market. It’s just something to think about. It just seems as though Apple isn’t taking full advantage of the power or versatility of its A-series processors as they’re only being used in iPhones and iPads and not even being used in their desktops or laptops. Amazon keeps making smart moves that Wall Street praises while Apple continues to lose out with moves Wall Street hates.
Day trading lying Asian so-called analysis cheat the market by spooking so-called institutional money managers
Much ado about nothing