Apple’s Upstream Supply Chain Reports Cooling iPhone X Component Demand; Trouble In Paradise Or Improved Yield?
Apple's iPhone X launch is undoubtedly the biggest smartphone event of 2017. In a year rife with upgrades, Apple managed to one up its rivals. Launching the tenth anniversary iPhone with a mix of completely new and much overdue upgrades, Cupertino gave its iconic smartphone lineup a completely new look. Investor and market pressure backed Apple into a corner and Cupertino came out swinging. The result? A $1,000 iPhone with facial recognition - that adequately represents both Cupertino's penchant for innovation and ludicrously high prices. However, things might not be as rosy as expected for the iPhone X. Take a look below to find out more.
Supply Chain Reports Claim That Apple's Component Demand For iPhone X Is Slowing Down, Indicating Either Weak Demand Or Improved Manufacturing
The iPhone X is a notoriously difficult to manufacture device. Apple's made too many changes at the same time and its Eastern manufacturing partners are struggling to keep up. Even though the iPhone X was launched alongside the iPhone 8 and 8 Plus, its release was set later. And even at this later date, users saw their expected delivery dates stretch out to months. Soon, reports surfaced that Apple's run into problems with manufacturing, as the smartphone's Face ID is simply too difficult to calibrate quickly.
However, soon afterwards, supply magically corrected itself, after rumors surfaced that Apple's relaxed its quality standards for Face ID. Cupertino denies these claims and right now there's no way to determine their authenticity. It's estimated that the iPhone X sold around 6 million units this Black Friday season. This is despite the fact that no discounts were available for the device.
DigiTimes reports that Apple's upstream supply chain is witnessing a decrease in iPhone X component demand. According to the publication, "With demand for key component not growing as strong as expected, the sources are concerned that Apple may reduce its iPhone X shipment target for the first quarter of 2018. The sources pointed out that Apple's component orders for the iPhone X in November were around 30% lower than its earlier forecast. Apple's key component supplier Largan Precision saw its November revenues grow a mere 0.05% from a month ago and expects its December revenues to decline on month as its clients may weaken their efforts on pulling in orders."
However, the sources still remain optimistic. iPhone X shipment for Q1 2018 will stay at levels comparable to November. They will drop in March, due to the Chinese holiday season. Regarding recent rumors of a middle tier LCD iPhone, take those with a grain of salt. It's unlikely for Apple to remove Force Touch from a device that costs North of $650. Furthermore, developers have put in quite a bit of time integrating it into the iOS ecosystem. Thoughts? Let us know what you think in the comments section below and stay tuned.
News Source: DigiTimes
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