Apple Chip Suppliers Report Slowing Orders for Q2 2016

by

ipadproiphoneseChip orders from Apple for the second quarter of 2016 have been notably slow, according to unnamed sources in the integrated circuit supply chain (via DigiTimes).

Overall, chip orders placed by Apple for Q2 are expected to be only slightly higher than those for Q1, despite the launch of the company's 4-inch iPhone SE and 9.7-inch iPad Pro earlier this month.

First-week sales of Apple's new devices have been disappointing, according to the sources, while chip shipments for the iPhone 6s and 6s Plus for the second quarter of 2016 are likely to be halved from those shipped in the first quarter. According to DigiTimes:

Shipments for the new iPhone SE will be unable to offset the fall in shipments for the iPhone 6s and 6s Plus devices in the second quarter, the sources continued. The shipment target for the SE in the second quarter is four to five million units.

The same sources claim chip orders from Apple are unlikely to return to the previous high levels until after the third quarter of 2016, when its next-generation iPhone, iPad, MacBook and iMac products become available.

Taiwan-based website DigiTimes has a mixed track record at reporting on Apple's upcoming product plans, but its sources within the upstream supply chain have proven reliable in the past.

Back in February, the site claimed Apple would ship 9.8 million iPads in the first quarter of 2016, potentially its lowest quarterly tablet sales since the iPad 2 in mid 2011.

In January, Apple CEO Tim Cook confirmed during the company's financial earnings conference call that iPhone sales would likely decline in the March quarter, marking the first year-over-year decline since the smartphone was released in June 2007.

Apple forecast that its total revenue in Q2 2016 would be between $50 and $53 billion, compared to $58 billion in the year-ago quarter, signaling the company's first year-over-year drop in revenue in thirteen years.

Top Rated Comments

(View all)
Avatar
57 months ago
The new newly announced products are weak.
Score: 8 Votes (Like | Disagree)
Avatar
57 months ago
Well, I personally do hope that they bring in their A-Game with the iPhone 7 or else the decline is imminent.
I mean c'mon, it's only matter of time until people feel being ripped off by 16GB/HDD/100$Pro/iHump over internal battery/Bigger/Smaller/ etc.

-
But of course this is just a personal opinion, and not meant to offend anyone who loves the company dearly.
Edit - I was cautious and even did say "decline" and not **** "doomed". -.-
Score: 8 Votes (Like | Disagree)
Avatar
57 months ago
Why are people shocked? Apple pretty much said this was going to happen. iPhone sales will still be higher than 2014, but lower than 2015 because 2015 was a blockbuster year triggered by huge amounts of interest in a larger screen.

Also, new products weak? They're not even included in Q2 reporting (Jan to March) so we don't know anything about those yet.
Score: 3 Votes (Like | Disagree)
Avatar
57 months ago

Yes it is from the report but it's stating that the extra shipments of the chips to make the new SE will not be enough to compensate for the fall in shipments of the chips used to make the 6S and 6S Plus during that quarter.

I guess it can be interpreted that way, which isn't as dire because it appears some of those chips included in the SE were made months ago.
Score: 1 Votes (Like | Disagree)
Avatar
57 months ago
There seems to be some discrepancies in this report:

1. Didn't the quarter end on the 26th or 27th? The first SE devices will arrive on the 30th or the 31st. Most shipping is 2-3 day or next day. How can any significant amount of SE sales be recorded in the March quarter?

2. The 3 largest Chinese online retailers had 3.4 million orders by the end of the first weekend of preorders. Additionally, the number of views on the Chinese Apple website increased as much as it did when the 6s was released. So, obviously there is decent demand in China. I think the total estimated sales of 4-5 million units in the June quarter is way off the mark.
Score: 1 Votes (Like | Disagree)
Avatar
57 months ago

Well, I personally do hope that they bring in their A-Game with the iPhone 7 or else the decline is imminent.
I mean c'mon, it's only matter of time until people feel being ripped off by 16GB/HDD/100$Pro/iHump over internal battery/Bigger/Smaller/ etc.

-
But of course this is just a personal opinion, and not meant to offend anyone who loves the company dearly.

Unfortunately you are right in this matter. Apple not really leads the way in innovation and design anymore - you forgot the camera-wart.

By the way, I do love Apple, that's the sadness in this.
Score: 1 Votes (Like | Disagree)

Top Stories

Apple Announces New 27-Inch iMac With 10th-Gen Processors, Up to 128GB RAM, 1080p Webcam, True Tone, and More

Tuesday August 4, 2020 8:07 am PDT by
Apple today announced a new 27-inch iMac with faster 10th-generation Intel Core processor options, next-generation AMD graphics, up to 128GB of RAM, a higher-resolution 1080p front-facing FaceTime camera, a True Tone display with a nano-texture glass option, a T2 chip, higher fidelity speakers, studio-quality microphones, and more. A breakdown of the new 27-inch iMac's features and specs:10th...

8 Third-Party Home Screen Widgets That You Can Try Out Now on iOS 14

Wednesday August 5, 2020 12:56 pm PDT by
One of the biggest new features of iOS 14 is Home Screen widgets, which provide information from apps at a glance. The widgets can be pinned to the Home Screen in various spots and sizes, allowing for many different layouts. When the iOS 14 beta was first released in June, widgets were limited to Apple's own apps like Calendar and Weather, but several third-party developers have begun to test ...

Everything New in iOS 14 Beta 4: Apple TV Widget, Search Improvements, Exposure Notification API and More

Tuesday August 4, 2020 11:14 am PDT by
Apple today released the fourth developer betas of iOS and iPadOS 14 for testing purposes, tweaking and refining some of the features and design changes included in the update. Changes get smaller and less notable as the beta testing period goes on, but there are still some noteworthy new features in the fourth beta, which we've highlighted below. - Apple TV widget - There's a new Apple TV...

Apple May Launch This Year's 'iPhone 12' Lineup in Two Stages, With 6.1-inch Models Debuting First

Monday August 3, 2020 3:14 am PDT by
Apple last week confirmed that its "‌iPhone‌ 12" launch will be delayed this year due to the ongoing global health crisis and restrictions on travel. Apple last year started selling iPhones in late September, but this year, Apple projects supply will be "available a few weeks later," suggesting a release sometime in October. We're expecting a total of four OLED iPhones in 5.4, 6.1, and...

Apple Explains Why You Might See 'Not Charging' When a Mac is Plugged In

Monday August 3, 2020 1:42 pm PDT by
If you have a Mac and have seen a "Not Charging" warning when plugging it in to power, Apple last week released a support document that explains why. Macs running macOS 10.15.5 or later have a Battery Health Management feature to preserve the life of the battery, and occasionally, the Battery Health Management option will cause the Mac to pause its charging for calibration purposes.Depending ...

Supposed iPhone 12 Display Unit Leaks

Thursday August 6, 2020 8:13 am PDT by
An image supposedly of an iPhone 12 display unit has been shared online by leaker "Twitter user Mr. White". Compared to images of an iPhone 11 Pro display piece, this new unit has a reoriented display connector, reaching up from the bottom of the display, rather than from the left-hand side on iPhone 11 Pro. This may be due to the logic board moving to the other side of the device. A...

Google's $349 Pixel 4a vs. Apple's $399 iPhone SE

Wednesday August 5, 2020 1:45 pm PDT by
Google this week launched its newest smartphone, the $349 Pixel 4a, a low-cost device that's designed to compete with other affordable devices like Apple's iPhone SE. We picked up one of the new Pixel 4a smartphones and thought we'd check it out to see how it measures up to the iPhone SE, given that the two devices have such similar price points. Subscribe to the MacRumors YouTube channel ...

Apple-Acquired Dark Sky Officially Shuts Down Android App

Saturday August 1, 2020 3:43 pm PDT by
Apple in March purchased weather app Dark Sky, and at that time, Dark Sky's developers said that the app's Android version would be discontinued on July 1, 2020. However, instead of shuttering the app on that date, the app's developers announced that the discontinuation would be delayed for another month. Now that it's August, Android users are no longer able to access the app, and...

Samsung Launches Galaxy Note 20, Galaxy Z Fold 2, and Galaxy Buds to Compete With Apple's iPhones and AirPods Pro

Wednesday August 5, 2020 10:07 am PDT by
Samsung today held a virtual Galaxy Unpacked event where it unveiled its next-generation smartphones that will compete with Apple's 2020 iPhone lineup, set to come out in the fall. Samsung announced the launch of the Galaxy Note 20 and the Galaxy Note 20 Ultra, the two newest devices in the Note lineup, and, more notably, the Galaxy Z Fold 2, Samsung's latest foldable smartphone. The...

Alleged 'iPhone 12' Images Depict Circular Array of Magnets in Chassis

Wednesday August 5, 2020 4:39 am PDT by
New images shared on Weibo appear to show a circular array of magnets housed inside an "iPhone 12" chassis. The unverified images depict 36 individual magnets in a circular arrangement, suggesting they could be related to mounting or charging. EverythingApplePro, who shared the Weibo-originating images on Twitter, also posted an image of an alleged iPhone 12 case with a similar array of...