Apple: Digitimes does it again

Reading only one part of the supply chain, and not naming sources, the Taiwanese daily says Apple’s iPhone 12 output could be cut in half.

From “Apple suppliers brace for weak 5G iPhone shipments in 2020” posted early Tuesday:

Apple is expected to launch its 5G iPhone later this year, but its supply chain partners are now much less optimistic about shipments for the new devices that reportedly will support mmWave in 2020. Apple has been relying mostly on Taiwan-based manufacturers for assembling its devices, but Chinese makers are now gaining ground, as the US client looks to diversify its supply chain. ABF susbstrate suppliers stand to lose orders from Huawei because of US sanctions on the Chinese firm, but they will expect tight supply of their products because of demand from other clients.

5G iPhone shipments may be much weaker than expected in 2020, say sources: Shipments of mmWave-enabled 5G iPhones slated for launch later this year are estimated to reach only 15-20 million units in 2020 compared to a previous supply chain estimate of 30-40 million units, intensifying competition among Apple’s suppliers of FC-AiP substrates for the new phones, according to industry sources.

My take: Digitimes drops these bombs every iPhone cycle. Its track record is, shall we say, mixed.

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  1. Jerry Doyle said:
    “…. In order to cut costs, diversify production risks and better tap the Chinese market, Apple has allowed Chinese partners to play an increasingly important role in assembling diverse devices including iPads, Apple Watches and AirPods, posing growing threats to the vendor’s existing Taiwan-based assemblers, according to industry sources.”

    Apple has a sophisticated supply chain involving a multiplicity of partners to participate competitively in sourcing finished products. Tim Cook always has warned not to focus on one particularly segment of Apple’s complex myriad supply chain operations. It would be myopic to read more into this news announcement other than Taiwanese based manufacturers assembling 5G components are seeing a drop due to a coming on-line supply chain diversification.

    June 30, 2020
  2. Rodney Avilla said:
    My Take on ‘My Take’ – Digitimes track record is very consistent, in that they drop these bombs every iPhone cycle.

    June 30, 2020
  3. Kirk DeBernardi said:
    Big heap of gut-feeling, but I’ve said it here before…

    I don’t believe Apple will release a 5G iPhone this year. That cookie’s still in the oven.

    Chance I’m wrong, but this is gut from all I’ve absorbed from following Apple.

    June 30, 2020

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