'Solid' forecast from Apple chipmaker Skyworks may bode well for 'iPhone 7' production

September-quarter guidance by Apple supplier Skyworks may back the idea of healthy "iPhone 7" production, despite some previous hints to the contrary, according to a new investor memo seen by AppleInsider.

Skyworks — which produces some power and wireless components for Apple — is anticipating a 10 to 11 percent rise in revenue in the September quarter, Wells Fargo analyst Maynard Um noted on Friday. That's stronger than any of its iPhone launch quarters in the past four years, with the exception of 2014, when Skyworks was forecasting a 47 percent growth coinciding with the launch of the iPhone 6 and 6 Plus.

Because the firm has other clients, it's hard to tell for certain if the guidance is linked to Apple, Um cautioned. In fact June was reportedly weak for the supplier's Apple business. The analyst added, however, that Skyworks management has pointed to its current inventory being raw materials or work in progress, rather than leftovers from previous production.

In June, Terry Gou — the chairman of Apple's main manufacturing partner, Foxconn — reportedly told subordinates to expect weak iPhone sales until early next year. That would seemingly contradict forecasts for suppliers like TSMC and Broadcom, which are expected to do well in the run-up to this fall's iPhone launch.

Nevertheless, the "iPhone 7" may not be a blockbuster, as it's predicted to be another interim upgrade improving speed, storage, and camera technology. A major redesign is only expected in next year's model, which could include an edge-to-edge OLED/AMOLED display, possibly even integrating FaceTime and Touch ID components.

22 Comments

mjhnl 27 comments · 8 Years

About 8 years ago

Well I can safely predict that those 10-11 rise won't come from Apple if those rumors about the iPhone 7 are true. iPhone 7 with the predicted features at propably the same price aren't competitive any more. Next Tuesday will be the moment of truth about what's coming in the foreseeable future. They're are getting so far behind on all fronts right now that it's hard to believe they'll recover the amount of customers they're losing every day. Do they announce profits next Tuesday? Propably yes, but market share will be down on every hardware category they're in. You're allowed to shoot me if I prove wrong next Tuesday :p Just kidding about that last of course B)

slprescott 759 comments · 10 Years

About 8 years ago

mjhnl said:

Do they announce profits next Tuesday? Propably yes, but ....

Apple is very healthy financially, so profit is not a question. Here is a chart illustrating the long-term trend of their profitability. Taking into account seasonal fluctuations, the long-term trend in AAPL profitability is clearly upward: both the peaks and the valleys increase year-over-year. https://ycharts.com/companies/AAPL/net_income

You may be right about Apple losing marketshare, but that's not necessarily bad financially. Having a large % of a low-margin (or negative margin) business would be bad.

evilution 1395 comments · 13 Years

About 8 years ago

mjhnl said:

it's hard to believe they'll recover the amount of customers they're losing every day.

Nice idea but stats show that Apple are getting more people coming from Android than people leaving for Android.

jfc1138 3090 comments · 12 Years

About 8 years ago

"Probably" show profits?

Youre seriously proposing there's a possibility Apple will post a LOSS for the quarter?

Now that's just idiocy.

mjhnl 27 comments · 8 Years

About 8 years ago

evilution said:

mjhnl said:

it's hard to believe they'll recover the amount of customers they're losing every day.

Nice idea but stats show that Apple are getting more people coming from Android than people leaving for Android.

So how come androids market share is growing while iOS is down? Don't tell me that they all come from cheap android phones because I see more Galaxy s7 edge then I see iPhone 6 these days.