iPhone demand is falling, claims component supplier Skyworks
William GallagherApple's iPhone 15 Pro
Apple supplier Skyworks has been regarded as a proxy for Apple's iPhone demand, and the company may have some bad news for investors.
Skyworks does not break down its earnings by customer, but it has been a longtime partner for Apple, making wireless networking components for the company. It's not believed to be the sole supplier for any of its components, however, so a drop in its sales is not definite proof of declining iPhone interest.
Nonetheless, Skyworks CEO Liam K. Griffin has told investors that the decline in smartphone component demand is marked. Consequently, the company is planning to diversify more.
"Skyworks delivered solid results and strong cash generation in a challenging macroeconomic environment," said Griffin. "During the March quarter, in our mobile business, we saw below normal seasonal trends, with lower-than-expected end market demand."
"Over the long-term," he continued, "we intend to leverage our connectivity technology across edge-connected IoT devices, automotive electrification and advanced safety systems, and AI infrastructure."
Skyworks chief financial officer Kris Sennesael offered guidance for the June quarter, saying that it too will be down "below normal season patterns." Sennesael did say, though, that this would primarily be because of excess stock inventory slowly clearing.
Neither Skyworks nor Apple detail what volumes or specific types of wireless components are involved. However, regardless of the component or the manufacturer, Apple has a track record of buying in bulk, and also in advance, as it notably has before with TSMC.
So as well as multiple suppliers, there are different timescales. Skyworks selling fewer components in its latest quarter doesn't necessarily mean Apple using fewer in the same period.
Apple is due to report its earnings on May 2, 2024.
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13 Comments
If you invest in tech and base your decisions on an executive at Skyworks you would have lost all your money, Apple suppliers are that last reference point you should look at.
There is choice in the marketplace despite what the EU/DOJ says, if Apple doesn't please you there is a fork in the road leading to the Windows and Android world. By the way Wolflow Microsoft hasn't gotten trackpads/waking up from sleep or power usage/management or even memory allocation right yet and in the Android world how's fingerprint and face-id actually working.
https://www.wired.com/story/metalenz-polar-id-first-look/ Notice how the Wired is all juiced up about something still in the laboratory? Android a Facsimile phone on so many levels and they still don't have LiDAR which every iPhone and all iPad Pro's have had for nearly five years.