Demand for Smartphones is Slowing, Says Apple Supplier TSMC
Demand for consumer electronics like smartphones and PCs is slowing due to continued geopolitical uncertainties and new COVID-related lockdowns in China, according to TSMC Chairman Mark Liu.
TSMC, or Taiwan Semiconductor Manufacturing Company, is one of Apple's main suppliers, responsible for the A-series and M-series chips that go in Apple devices. Liu's comments were delivered at the Taiwan Semiconductor Industry Association and were shared by Nikkei.
Customer interest in smartphones is falling in China specifically, with Liu also warning about the rising cost of components and materials. Production costs are going up for chip companies, and Liu believes the "pressure could eventually be passed on to consumers," a scenario that could also see demand impacted by higher costs.
"Everyone in the industry is worried about rising costs across the overall supply chain... The semiconductor industry already and directly experienced that cost increase," Liu said, adding that the industry is also concerned about macroeconomic uncertainties this year.
Liu said that TSMC is not changing its growth targets and is still unable to meet customers' demand with its current capacity. TSMC plans to reorganize and prioritize orders for "areas that still see healthy demand."
Signs of a dip in customer demand surfaced this week amid rumors that Apple is planning to cut iPhone SE production. Just weeks after releasing the iPhone SE, Apple allegedly told suppliers that it wants to cut back on iPhone SE production by as much as two to three million units because of a "weaker-than-expected demand," though some suppliers have refuted this report.
Popular Stories
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
Apple’s iCloud Private Relay service is down for some users, according to Apple’s System Status page. Apple says that the iCloud Private Relay service may be slow or unavailable. The outage started at 2:34 p.m. Eastern Time, but it does not appear to be affecting all iCloud users. Some impacted users are unable to browse the web without turning iCloud Private Relay off, while others are...
Apple is planning to release at least one iPhone 17 model next year with mechanical aperture, according to a report published today by The Information. The mechanical system would allow users to adjust the size of the iPhone 17's aperture, which refers to the opening of the camera lens through which light enters. All existing iPhone camera lenses have fixed apertures, but some Android...
