Roger Fingas
Several of Apple's Taiwan-based suppliers on Thursday announced financial setbacks, which could support claims of slowed production for the iPhone 6s and 6s Plus.
Touch panel maker TPK Holding, for instance, said that December revenues were about $235 million — down 37.91 percent month-to-month, or 41.24 percent year-over-year, according to DigiTimes. Another touch tech provider, GIS, saw December revenues fall 31.91 percent monthly, even if they company actually grew in the quarter overall thanks to orders from other clients.
Catcher — an iPhone chassis supplier — said that in response to reduced orders by clients, it will cut its capital expenditures in 2016 to a level well below that of the past two years. Though chairman Hong Shui-shu gave an optimistic forecast as recently as November, he noted that clients have dramatically altered their forecasts within the last two weeks.
Hong commented that Catcher's performance will probably stay flat year-over-year in the first half of 2016, and may not resume growth until the second half, at which point the company may re-examine capex.
The new data appears to back a Nikkei claim that Apple is cutting iPhone 6s/6s Plus production by 30 percent in the current quarter, even if it should pick back up in the quarter following. The drop has been characterized as an "inventory adjustment" — allowing dealers to sell through their current stock — rather than a reflection of weak public demand.
Some have worried that the public might not have much interest in the iPhone 6s, since the device has relatively modest improvements over its predecessor, such as 3D Touch, a faster processor, and better camera technology.
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21 Comments
More smoke to the fire. Its time for us Apple fans to realize that March and June quarter will show iPhone unit sales declines YoY. The only thing that can boost iPhone unit sales the next 2 quarters is if the 4 inch phone becomes a big hit and a ton of 4/5 series users were really waiting for it.
This news pretty much puts a lock that we see $80 share price in a few months or sooner. Could happen as soon as January 26th earnings call. If Apple guidance for revenue decline for March quarter things could get really ugly. I'd sell some shares now at $100 or gather some capital for the inevitable drop to $80. Long term I see Apple reach $125 by end of year and $140 if 7s shows unit growth.