14 DAY TRIAL // Rumors on the 2018 family of iPhones have until now been rather contradictory, with some claiming that Apple could embrace Face ID on all models and others indicating that the Home button might be retained on at least one configuration.
All this uncertainty surrounding the new iPhone generation is seriously hurting suppliers, as for many of them, Apple is their biggest customer and any potential change of plans regarding the components they manufacture might have big impact on their revenue.
One of them is AMS, the company in charge of building parts of the TrueDepth camera on the iPhone X. According to a report from Reuters, its share dropped 9.1 percent the last quarter, all because it’s not yet clear if Apple plans to maintain the same production capacity this year or not.
“Due to … product transitions and product changes in a major consumer program preventing pre-production of parts, AMS also expects a significant under-utilization of capacity,” the company was quoted as saying.
Increased revenues in H2 2018
Dialog Semiconductor, an Apple supplier building iPhone power management chips, recorded a 5.4 percent share decline, while STMicro, which makes iPhone sensors, dropped 4 percent.
There are reports that Apple might give up on the original iPhone X entirely once the new generation is ready, mostly following sales that are substantially slower than expected. Apple is believed to have already reduced orders by up to 50 percent due to this performance, and production could be further adjusted depending on sales in the next quarters.
While most Apple suppliers expect a revenue increase in the second half of the year when Apple places orders for 2018 iPhone models, some are already exploring partnerships with other companies. AMS, for instance, is said to be discussing deals with new customers, including Huawei, Xiaomi, and Samsung.
Apple’s 2018 iPhone lineup could include three models, out of which two would feature an OLED display. A third model with an LCD screen is expected as well.