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Apple suppliers concerned about sales performance of new iPhones

By Greg S · 10 replies
Sep 17, 2018
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  1. Pricing on the latest batch of iPhones has supply chain partners concerned over how well the new devices are going to meet consumer demand. With pricing set at $749, $999, and $1,099 for the iPhone Xr, Xs, and Xs Max respectively, contract manufacturers Foxconn and Pegatron are uncertain about their fourth quarter results.

    Knowing that the iPhone X did not quite meet Apple's lofty sales expectations due to its price, similarly and higher priced models are unlikely to sell significantly better. According to TrendForce, the two OLED models have sales estimates that are too high for the current market.

    Normally Apple's manufacturing partners are more concerned about whether they can produce enough units in a short period of time. This year, there is more concern about whether they will have enough work to keep improving their bottom line.

    Due to the fact that the iPhone Xr does not launch until late October, the time immediately following the launch of the iPhone Xs and Xs Max is a crucial watch period. Initial demand for the luxury-priced models will be a good indicator of how many units contract manufacturers will need to produce throughout the next few months.

    Large phone displays have been a hit with consumers for a variety of reasons, but far less expensive Chinese smartphones have started to enter this space. The Asia Pacific region is major concern point for Apple's suppliers because there is unlikely to be as high of demand on the significantly more expensive iPhones. It is hard for anyone to justify paying thousands for a phone when dozens of alternatives are readily available with only minor short falls.

    Lower prices on the iPhone 7 and iPhone 8 may also cause sales to remain steady of the slightly older models, thus lessening demand for the latest handsets. For Apple, revenue may still break new records, but manufacturers only turn a profit from the newest models they are still producing and could be in put in a tough position.

    Permalink to story.

  2. seeprime

    seeprime TS Guru Posts: 382   +409

    Apple might see their parts cost increasing if sales are down. This could be a vicious circle for Apple, with prices going even higher, to compensate for parts costs increases.
    Reehahs and cliffordcooley like this.
  3. trparky

    trparky TS Evangelist Posts: 533   +425

    Um... no sh*t, Sherlock. I could have told you that. These $1000 iPhones are crazy man. I talked to an Apple rep on the phone and she told me that she was already answering questions about the lower cost iPhone Xr and it's still a month away. That should tell Apple something, that the Xs series is too expensive!!!

    $700? $800? OK, I can deal with that. $1000? Nope, nope... and did I mention nope? A whole lot of "nope" here.

    I have a feeling that the Xr model is going to be far more popular simply due to price. Apple's straight up crazy with that $1000 price tag.
    p51d007 likes this.
  4. Jaabaaar

    Jaabaaar TS Rookie Posts: 22   +9

    I ordered the 512gb version XS Max in bling bling gold. That’s the most memory ever in a phone. It’s a beautiful screen. They don’t make a S-class Mercedes for everyone I guess. I’ll have more than enough podcasts if I get stuck on a desert island. All you broke folks, too old people, and those effected by the flooding and windy weather have my understanding as why you’re not getting this masterpiece. Steve Jobs, to me, is the Messiah. Consumerism winner.
    Badvok, Squid Surprise and warLoc like this.
  5. p51d007

    p51d007 TS Evangelist Posts: 1,964   +1,229

    I wouldn't TOUCH any phone, over $500 bucks! Just not worth it to have a snazzy color, or other bling, just to have that stupid apple on the back. It's a flipping phone, not a piece of jewelry, but considering what they cost, you should probably lock them in the safe...if you can pry it out of your hands. What's with the PIH syndrome anyway (phone in hand). Can't you put them away for 2 minutes during the day?
    When a build cost on an iPhone, is under 300 bucks (yes I know advertising pushes that up!), but they demand a retail price of 1200 bucks? Nuts!
    But, until Apple crashes, their stockholders will demand more return on their stocks, which mean higher and higher prices. Hope they choke on these things! But, knowing the sheeple in the USA, who are tricked into no interest for x months, they RENT these stupid things and are on the hook year after year after year for monthly fees.
    LOL, oh well, THEIR money, not mine.
  6. captaincranky

    captaincranky TechSpot Addict Posts: 14,925   +3,985

    Well, isn't that special.

  7. captaincranky

    captaincranky TechSpot Addict Posts: 14,925   +3,985

    Mods, I'm sure you'll pull this post. But before you do, look at who dishes out "likes", to a low grade, condescending, "buyer's affirmation, I have more money than you do", sh!tpost", like this.:poop:
  8. Jaabaaar

    Jaabaaar TS Rookie Posts: 22   +9

    It’s nice humour about the situation. Some people make points using humour.
  9. captaincranky

    captaincranky TechSpot Addict Posts: 14,925   +3,985

    It isn't displayed but you can get a "rolleyes" emoticon by typing "rolleyes" in between two colons. I'm good with sarcasm, as long as I can easily identify it it, and brace myself.

    But then the "Church Lady" response, in and of itself is pretty sarcastic too. I must have forgotten to add, :rolleyes:
  10. Badvok

    Badvok TS Maniac Posts: 296   +152

    It's not called the iPhone Maximum Excess for nothing :)
  11. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,766   +1,160

    You know, I understand people want simple and this far Apple was winning on that front, however... with the battery fiasco and the fact (And I keep bringing this up) that I was able to compare how well an iPhone 6 vs an LG G2 (Both flagships of that period of time) aged. I'm sure this is not a surprise but the iPhone 6 is snail slow (Even after changing the battery) versus the G2.

    This lead me to really believe those memes that a new gen iphone was coming and the old one started to get slower and slower...

    And sorry I deviated too much from the original idea. iPhones were supposed to be simple and easy to use, however I've found nothing but the opposite while trying them (An X vs Galaxy S9), my SO keeps talking about cool features until I show her what a true cool feature is, safe and proud to say that her next phone will be Android :)

    EDIT: Oh... this was all to say... don't buy into the hype, Apple is definitely not what it once was.

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