14 DAY TRIAL // Pretty much everyone seems to be sure that the upcoming iPhone XR going on sale on Friday would be quite a hit, but as far as Apple suppliers are concerned, being more cautious is the right approach.
A report from Digitimes and citing industry sources indicates that Apple suppliers in Taiwan are afraid that iPhone demand could slow down soon, which in turn would lead to the Cupertino-based tech giant reducing its orders.
In other words, iPhone XR may “fail to stimulate the overall demand for iPhones,” the report adds, so Apple would have no other option that to cut the number of orders at its suppliers.
Needless to say, this would generate declines for all of them, and TSMC in particular is likely to announce lower-than-expected revenues in the fourth quarter. TSMC builds the A12 chip for this year’s iPhones, and it was recently revealed that the company has been chosen as the exclusive manufacturer of the A13 powering 2019 iPhones.
Additionally, Largan Precision, which builds camera lens, expects shipments to decline in October and then go even lower in November, with December estimates still uncertain.
iPhone XR launching this Friday
iPhone XR, which is the cheapest iPhone unveiled by Apple this year, will go up on pre-order this Friday, with pricing in the United States to start at $749. Shipping will kick off next Friday on October 26.
Earlier this year, it was estimated that iPhone XR would help generate a super-cycle for Apple, with the device accounting for more than 50 percent of all orders placed by the company at its suppliers. Furthermore, analysts expect this model to be the main catalyst of the growth iPhone sales would record this year, overtaking both the iPhone XS and the previous-generation iPhone 8.
iPhone XR will be available in a wide variety of colors, and will come with a single lens camera, an LCD screen, and no 3D Touch.