The latest lineup of smartphones from Apple is not doing as well as they had originally hoped. In fact, suppliers of the iPhone are getting ready for lower orders this first quarter of 2018 because of that fact, in addition to seasonal factors. Supply chain sources and component suppliers are also bracing for a low order visibility for the iPhone 8, iPhone 8 Plus, and iPhone X.
A DigiTimes source said, “Component order for iPhone devices will come 15-30% less than expected for the first quarter due mostly to seasonal factors, but some sources argued that the slower than expected sales of iPhone 8 and iPhone 8 Plus have dragged down the momentum for the iPhone X.”
Some reports are showing signs of the decline in orders for some of Apple’s flagship phones as early as the fourth quarter of last year. In lieu of that information, some suppliers planned to temporarily halt the production for the entire month of February. An additional influence is said to be the holidays surrounding the Lunar New year, which lasts a week. At this time, rates for capacity utilization are reduced by quite a bit.
Some of the suppliers who will be watching their inventory levels the closest appear to be those that make memory chips, 3D sensing modules, camera modules, PCB’s, as well as backend service firms.
Reports are still conflicting, however, concerning the iPhone X sales, which was launched during September. Some data shows what is considered to be “stellar” performance by the iPhone X in various markets globally for the month of November, even though sales were considered a mixed performance from September up to that point.
It was in December, however, that some sources claimed that the iPhone X preorders were not nearly as strong as certain markets had been expecting them to be. Other analysts and reports showed that a weakened demand is still expected during the first quarter of 2018, especially since many opted to purchase their iPhone X early.
On the internet forums, people are weighing in with their thoughts on the dilemma:
“No one wants a four year old giant bezel design? Shocking!”
“Should we be surprised that a phone priced like a laptop isn’t selling as well as they hoped? This is your market cap, Apple.”
“Phone looks the same as it did when the 6 came out, and the X is as expensive as a used car”