iPhone X, iPhone XR prices may drop this year, claims analyst: We find out why
The drop in demand for Apple iPhones in the Chinese smartphone market has caused many Asian Apple suppliers to slash their 2019 forecasts. This may ca
Posted 8 months ago in Science and Technology.
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smartphone manufacturers and the steady growth of the number of Android smartphones in the market, there seems to have been a considerable drop for the Apple iPhone. According to a Japanese online media report, the drop in demand for Apple iPhones in the Chinese smartphone market has caused many Asian Apple suppliers to slash their 2019 forecasts. In light of the trade war between China and US intensifying the dent on the global economy, Nidec, a supplier of vibration motors in Apple iPhones, have made an announcement that the company is expecting a major drop in their yearly revenue. The announcement from Nidec comes a day after Taiwan Semiconductor Manufacturing Co. (TSMC), a contract chipmaker, made an announcement regarding its revenue forecast for the January-March quarter. Apple also revised its first-quarter earnings guidance earlier this month.
In a report by Nikkei Asian Review, Nidec Corp, a Japan-based company which manufacturers vibration motors for all iPhone models, had reduced their full-year profit outlook by 25 per cent. The company had seen a good year until November 2018 when the tide shifted focus to the Android smartphone market.
"We have faced extraordinary changes," stated Shigenobu Nagamori, Chairman, Nidec, to the reporters at a press conference. "Orders, sales and shipments in all business segments around the world saw major shifts," he further added.
On Wednesday, TSMC, which is the sole supplier of chips for Apple iPhone models, stated that they are expecting a 22 per cent drop in their revenue from January 2019 to March 2019 this year. The drop is about 22 per cent which is significantly larger than the 13 per cent decline the market has been expecting. The company said the decline was mainly due to a sudden drop in demand for high-end phones. TSMC, in addition to Apple, also supplies chips to Huawei HiSilicon technologies, Qualcomm, Nvidia, Broadcom, MediaTek, and AMD.
TSMC also mentioned they are slashing their $11 billion capital spending plans and are implementing a hiring freeze. Apple also announced earlier this year that they will be reducing their revenue outlook for the first quarter since the company has been looking at weak sales and demand for the new iPhone models in China and other markets as well. Analysts have blamed weaker demand arising because of the pricing of the new models of the iPhones and have also predicted that Apple will be reducing the price of the iPhone XR in the Chinese market in the coming months.
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