Apple drops in Europe trading after report on iPhone order cut
Jun 09 2018 by Johnny Bowman
Apple's USA shares are up about 14 per cent so far this year, while European suppliers have had mixed fortunes.
Shares in Apple plunged about two percent on the report; its suppliers AMS and Dialog Semi tanked six percent and 4.1 percent respectively.
The report does also point out that Apple was probably overly optimistic about the sales of its iPhone X when it placed orders previous year.
Apple may be anxious that its next iPhones won't be as popular as its last.
Apple expects to ship 80 million new model iPhones this year, down 20 per cent from what it had planned at the same time last year, Japanese financial daily Nikkei reported on Friday, citing industry sources.
Apple is preparing to introduce three new iPhones in the fall, according to the report.
Apple reported iPhone unit sales of 52.2 million in its most recent quarter, slightly below the Thomson Reuters consensus estimate of 52.3 million. Analysts suspect that the $1,000 iPhone X may be hurting demand, even though it was the best-selling smartphone in early 2018.
Apple usually launches its new iPhone lineup during the second half of the year.
If accurate, the report could simply suggest that Apple plans to avoid a repeat of the 2017-2018 iPhone X, iPhone 8, and iPhone 8 Plus scenario, where phones became abundantly available to interested customers relatively quickly after their release rather than being subject to major shortages - the latter a false sign of success that's paired with consumer disappointment. "Apple is doing enough in general to keep the ball moving forward", Forte said.
A supply chain source told the Asian news agency that Apple requested Foxconn and Pegatron to begin assembly in July for the OLED devices.
The iPhone is by far the biggest revenue generating product from Apple.