Taiwan suppliers remain cautious about orders for new iPhones
Monica Chen, Hsinchu; Jessie Shen, DIGITIMES
Despite the iPhone XR slated for launch in the latter half of October, Taiwan-based suppliers engaged in the Apple supply chain remain cautious about orders for the new iPhone series for the rest of 2018, according to industry sources.
If sales of the upcoming iPhone XR, which will be priced lower than the XS models, fail to stimulate the overall demand for iPhones, said the sources, Apple may slow down its pace of orders.
Suppliers for the new iPhones are expected to post weak sales for the fourth quarter of 2018, the sources noted. TSMC, for example, will likely generate lower-than-expected revenues in the fourth quarter, which may prompt the foundry to revise downward its sales guidance for all of 2018, the sources continued.
Largan Precision, another Apple supplier specializing in camera lens, disclosed recently that shipments are expected to decrease in October and drop further in November. Order visibility for December is still unclear, the company also warned.
In addition, the ongoing US-China trade war will likely have a negative impact on the overall smartphone demand, which is already decelerating, in the fourth quarter of 2018, according to the sources.
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