Suppliers of iPhone X components report lowering orders
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Analysts have been reporting strong growth for the iPhone X, but that is contradicted by reports from several sources close to the component supply chain.
The launch push is over – limited by a shortage of difficult to manufacture components, shipping times quickly shot up to 4-5 weeks. Yields improved and the wait times dropped to 1-2 weeks. But now that the early adopter rush is over, it seems that demand is lagging behind the predictions.
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.
The revenues of components suppliers either stayed level or even dropped compared to the previous months and they expect things to get worse.
Their prediction is that the January and February shipments will be on the November levels, but there will be a sharp drop in March. The Q1 predictions are for a 30% drop compared to this outgoing quarter.
There is speculation that consumers are waiting for the more affordable iPhones to adopt the iPhone X design (rumor has it this will happen next year).
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