This is the time of the year where Apple starts preparing for mass-production of its iPhones ahead of the iPhone launch event in September. However, a new report by Digitimes who cites “industry sources” claims that the momentum for touch panels and other iPhone components have been very weak so far. If this new report turns out to be true, then it appears that the “low order visibility” indicates that Apple doesn’t see the upcoming iPhone propelling a turnaround in its sales; which could indicate that the Cupertino-based tech giant has no faith in its upcoming product.
While this report indicates that Apple doesn’t foresee a huge demand for the 2019 iPhone, one should take this information with a healthy dose of salt as Digitimes has a reputation of being inaccurate at times. Also, it is worth mentioning that reports from the supply chain can also be misleading as Apple intentionally diversifies its supply chain. What this means is that by looking at orders from just a couple of Apple suppliers doesn’t portray the big picture.
Apple could be treading cautiously with their orders as the iPhone; the company’s biggest cash-cow took a beating in the Q3 earnings report. This has happened for the first time since 2012 where iPhones made up less than half of Apple’s revenue last quarter. Also, Apple has been facing a tough time in China where iPhone sales are continuously declining.
Add to the fact that the biggest change will be seen in just the camera department doesn’t spell good news for Apple. Apart from the camera, there won’t be any other significant reason to upgrade from a previous generation iPhone.
Certain analysts at Mizuho Securities said that the 2019 iPhone will “lack novelty.” So seeing no upturn in sales is largely expected with Apple’s 2019 iPhone line-up and this is a major reason why certain suppliers are reportedly receiving low orders.
