Apple Suppliers Cutting Sales Forecasts Amid 'Extraordinary' Decline in Chinese Demand

Major Apple suppliers in Asia have been cutting their 2019 sales forecasts and some have cited an "extraordinary" drop in Chinese demand, reports Nikkei.

Taiwan Semiconductor Manufacturing Co (TSMC), which supplies the A-series chips used in the iPhones and other devices, is forecasting a 22 percent drop in revenue for the January to March quarter. TSMC said there was a "sudden drop in demand" for high-end smartphones, also attributing its revenue decline to the U.S.-China trade war and economic uncertainty.

iphone xs vs xr
The same thing goes for Nidec, a company that supplies the vibration motor in the iPhone. Nidec has dropped its full-year profit outlook by upwards of 25 percent after slumps were seen in November and December.

"We have faced extraordinary changes," Nidec Chairman Shigenobu Nagamori told reporters at a Thursday news conference as the company reversed a previous forecast of a record profit. [...]

The tide shifted in November, however. "We saw big slumps in November and December," Nagamori said. "Orders, sales and shipments in all business segments around the world saw major shifts," he explained.

Apple has forecast its own decline in revenue, dropping guidance for the holiday quarter to $84 million, down from an earlier November estimate of $89 to $93 million.

Apple has asked its suppliers to cut ‌iPhone‌ XR, XS, and XS Max production by 10 percent for the next three months and has implemented its own reduction in hiring for certain divisions amid the slump.

The company is attempting to boost ‌iPhone‌ sales by dropping prices in China and offering increased trade-in values in the U.S. and other countries.

Tag: TSMC

Top Rated Comments

Mac Fly (film) Avatar
67 months ago
We could blame the trade war, and wiggy is an easy target, but these phone prices have gotten out of hand and competition is making better devices for most people. Maybe wall st and its companies need to stop being such greedy jerks?
Score: 42 Votes (Like | Disagree)
HJM.NL Avatar
67 months ago
To blame the economy is a cheap excuse for not looking at the real reason: Apple isn’t giving its customers value for money anymore. For the price of the iPhone X you can have two flagship phones from any other brand.

Apple needs to out innovate or half the prices to give customers a reason to buy or stay at Apples brand.

Loyalty has its limits so does greed.
Score: 37 Votes (Like | Disagree)
cardfan Avatar
67 months ago
I wonder if there's real "Apple boycott" happening in China, as previously reported. When traditionally nationalist countries like them claim something like it, they really stand behind it. I hope it isn't one of those things.
Perhaps. But why hope at all? I hope sales plummet. It’s good for consumers. Apple has to work harder.
Score: 24 Votes (Like | Disagree)
Freida Avatar
67 months ago
Good news. Keep it coming. We really need Apple off the high horse. The went too far this time.
So yeah, reality check slap is always good wake up call for great companies. Now make it better Apple. Its about time!
Score: 21 Votes (Like | Disagree)
DakotaGuy Avatar
67 months ago
They will probably just raise prices again to keep profit high with less sales.
Score: 18 Votes (Like | Disagree)
CrysisDeu Avatar
67 months ago
I wonder if there's real "Apple boycott" happening in China, as previously reported. When traditionally nationalist countries like them claim something like it, they really stand behind it. I hope it isn't one of those things.
NO, Chinese smartphones are just more competitive with a lower price point.
Score: 15 Votes (Like | Disagree)

Popular Stories

Apple car wheel icon feature yellow

Apple Cancels Electric Car Project

Tuesday February 27, 2024 11:05 am PST by
Apple has canceled all plans to release an autonomous, electric vehicle, reports Bloomberg. Apple has been working on an Apple Car for more than a decade and invested millions of dollars into development before deciding it was not a viable project. Apple's Chief Operating Officer Jeff Williams today told approximately 2,000 employees working on the Apple Car that the project was canceled,...
Beyond iPhone 13 Better Blue Face ID Single Camera Hole

Six Reasons to Wait for Next Year's iPhone 17

Thursday February 22, 2024 4:20 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
General Apps Messages

iOS 17.4 to Add This 'Groundbreaking' New Messaging Feature

Friday February 23, 2024 5:05 am PST by
With iOS 17.4, set to arrive in March 2024, Apple is bringing a new cryptographic security feature to iMessage called PQ3. This "groundbreaking" and "state-of-the-art" protocol provides "extensive defenses against even highly sophisticated quantum attacks," according to Apple. Let's break down what that means. Apple's iMessage service already supports end-to-end encryption, but security...
iOS 18 Mock iPhone 16 Feature Gray

iOS 18 Rumored to Be Compatible With These iPhone Models

Tuesday February 27, 2024 6:31 am PST by
iOS 18 will be compatible with the iPhone XR, and thereby also the iPhone XS and iPhone XS Max models with the same A12 Bionic chip, according to a post on X today from a private account with a proven track record of sharing build numbers for upcoming iOS updates. The post was spotted by MacRumors contributor Aaron Perris, and it has since been deleted. However, this was likely because the...
iOS 17

iOS 17.4 Coming Soon With These New Features for Your iPhone

Monday February 26, 2024 6:08 am PST by
In a press release last month, Apple confirmed that iOS 17.4 will be released in March, and the update includes several new features and changes for the iPhone. Key new features in iOS 17.4 include major App Store changes in the EU, Apple Podcasts transcripts, and an iMessage security upgrade. The update also adds new emoji and includes preparations for the launch of next-generation CarPlay...
applearcade

Game Developers Describe 'Smell of Death' Around Apple Arcade

Monday February 26, 2024 7:24 am PST by
Some game developers are dissatisfied with Apple Arcade amid concerns about the subscription service's future, a new report claims. Sources speaking to mobilegamer.biz described a "smell of death" around Apple's games subscription service and noted the difference between the company's investment in TV and music, and its interest in games. "At the very top of the company there needs to be a ...