Apple suppliers fall due to weak iPhone demand

Jamie McKane

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Apple suppliers fall due to weak iPhone demand

Major suppliers to Apple Inc.’s iPhone fell Tuesday as investors fretted that one of the most important product lines in the technology sector was seeing weak demand.

In Asia, Japan Display Inc. slashed its forecasts for sales growth and operating margins, citing volatile customer demand. JDI, which makes LCD screens used in the iPhone XR, plunged as much as 11 percent to its lowest since debuting in 2014.

[Bloomberg]
 

ThinkCentre

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This is not just for Apple! All suppliers of smart phones have more or less the same experience!
 

neoprema

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We're approaching an era where two things are happening;
1. Most of the big-name cellphones are becoming longer-lasting, more powerful and generally less "new-feature-ish" in models being released year-on-year and;
2. Economies are becoming tighter and people are less inclined to spend money on a new phone every year when the one they have is doing the job perfectly.

Steve Jobs was always against releasing phones just because. Yes, that impacted bottom-line but I think he had a point. If you can't revolutionize and create something with "wow!" factor - don't. Otherwise you're just releasing a new product every year for the sake of your competition that's doing the same.
 

R13...

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In Asia, Japan Display Inc. slashed its forecasts for sales growth and operating margins, citing volatile customer demand. JDI, which makes LCD screens used in the iPhone XR, plunged as much as 11 percent to its lowest since debuting in 2014.
JDI has been falling since 2014, not sure it is even related.
iPhone prices are ridiculous though no wonder customer are starting to pause before committing to another buy.
 

Nick333

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I guess Apple has found a price point that overcomes the sort of brand loyalty that makes a hairdresser moonlight as a hooker to be able to buy the next big thing.

I suspect there's just a limit to what people are willing to pay for a handheld device based on a limit to how useful a handheld device can be. As good as a handheld screen can be, you're still going to want to watch most of your content on a TV screen. As convenient as editing documents and photos on a phone can be, you're still going to want to do it on nice big monitor for the most part. You get my point. You just don't need to spend R20K to be able to do all the things that phones are actually good for at the moment.
 

namzsteve

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People want things that matter, Apple is very slowly becoming irrelevant with their "we don't give a schit" attitude
 

Nick333

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People want things that matter, Apple is very slowly becoming irrelevant with their "we don't give a schit" attitude
Like neoprema said, they're just trying to compete with the competition. They're just another smartphone manufacturer now - albeit a good one. They really should just stop releasing new phones and work on developing ground breaking again. I think a device that genuinely replaces your PC and integrates flawlessly with your AV system should be the next big thing. I know we're already there I many ways, but I think the PC things is the key. Dumb workstations that your phone connects to when you walk into a room, so you can sit down and do some work without actually changing devices would actually be worth 20k or 30k. How about a dumb laptop or tab, that just supplies a screen and/or keyboard for the phone in your pocket?
 

R13...

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Like neoprema said, they're just trying to compete with the competition. They're just another smartphone manufacturer now - albeit a good one. They really should just stop releasing new phones and work on developing ground breaking again. I think a device that genuinely replaces your PC and integrates flawlessly with your AV system should be the next big thing. I know we're already there I many ways, but I think the PC things is the key. Dumb workstations that your phone connects to when you walk into a room, so you can sit down and do some work without actually changing devices would actually be worth 20k or 30k. How about a dumb laptop or tab, that just supplies a screen and/or keyboard for the phone in your pocket?
They're probably not doing that for fear of cannibalizing their other product lines. They still want you to buy an iPhone, iMac, MacBook & iPad. While it may not be feasible to replace all of those with a phone it should be possible to replace some of them, but they really have no incentive to do so.
 

Crowley

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Dumb workstations that your phone connects to when you walk into a room, so you can sit down and do some work without actually changing devices would actually be worth 20k or 30k. How about a dumb laptop or tab, that just supplies a screen and/or keyboard for the phone in your pocket?
Like the Samsung Dex station?
Connect Galaxy S8 or S8+ to a monitor, keyboard, and mouse using DeX Station to multitask with the ease of a desktop environment. Access files, edit documents, and stream videos on a bigger display—all at once—using your Galaxy S8 or S8+ as the computer.
 

Nick333

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They're probably not doing that for fear of cannibalizing their other product lines. They still want you to buy an iPhone, iMac, MacBook & iPad. While it may not be feasible to replace all of those with a phone it should be possible to replace some of them, but they really have no incentive to do so.
Probably, but they need a next big thing that is actually big and a thing. More processing power, memory and 4k screen is just not that useful in a handheld device.
 

xeslaro

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The selling price for premium smartphones have reached stupidly high levels of late.

We have an obsession and insatiable appetite for technology. Manufacturers capitalise with predictability. The frequency at which tech advancements are unleashed, occurs with cosmic certainty.

Whilst I understand cutting-edge technological advancements come at a cost, these phone manufactures should also realise that consumption levels are indicating that these higher costs is slowly elevating accessibility into a niche market.

20k-30k for a device is, firstly, priced way out of many consumers' affordability. Secondly, of those who can afford it, I guess, many now think twice - by rationalising a simple formula: does the tech advancement, whilst cognisant of the cosmic regularity, offer sufficient value to justify my splurge. Or, is better value to be found elsewhere in the market.

Certain other manufactures, knowing the above, are beset on tipping the scale that balances gingerly, with offerings of similar high-end tech at affordable pricing.

Capitalism working at its best.

M2cw.
 

AstroTurf

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We're approaching an era where two things are happening;
1. Most of the big-name cellphones are becoming longer-lasting, more powerful and generally less "new-feature-ish" in models being released year-on-year and;
2. Economies are becoming tighter and people are less inclined to spend money on a new phone every year when the one they have is doing the job perfectly.

Steve Jobs was always against releasing phones just because. Yes, that impacted bottom-line but I think he had a point. If you can't revolutionize and create something with "wow!" factor - don't. Otherwise you're just releasing a new product every year for the sake of your competition that's doing the same.
For me (not apple user but Samsung user).

3. Big brands are leaving behind their faithful user base by out pricing them. (I have had samsung since S4, I stopped upgrading after getting my s7 as I do not think the price is worth the product anymore, I recently started switching brands as I found a much cheaper phone with more features better suited to me).
4. These devices are now becoming regional simply due to cost.
 

Nick333

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Like that yes, but something that doesn't become essentially obsolete when you launch a new flagship a year later. Also, something with an OS that works on a handheld while still being able to run full-fledged versions of software on a workstation.
 

Dolby

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I think phones have plateaued actually.

A phone from 2 years ago is not too bad for the price and not everyone actually requires an upgrade. I found the same thing with PCs - when I was a yuongster, I found my PC unusable after 1 year ... it was old, slow and just bleh. *I'm now using a PC from 5 years back and I'm perfectly happy with it.

* I'm not a gamer
 

Jase

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Apple (and other major brands) has out-priced me. I cannot justify spending R16k+ for a device that makes calls, receives spam SMS's and chats via Whatsapp / Telegram.
 

Neoprod

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As others have said, premium handsets aren't compelling anymore...apart from being premium, that is. There is still going to be that class of buyer willing to pay the asking price but that class is shrinking. I haven't had a premium class phone since the iPhone 5 was a thing...the prices back then surpassed what I was willing to spend (always been on pre-paid).

I'm not sure what feature would make a premium phone compelling again at the prices they command nowadays. I'm pretty certain there's nothing they could put into a phone that would make me spend that much (maybe a 15 grand rebate).
 

akescpt

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well stop charging kak prices. its now ridiculous. ill hold onto my phone till it falls apart. upgrading every time is just insane. do i want to upgrade? hell yes! will i? probably not. i only desire a bigger screen. functionality wise, how will they blow previous models out of the water?
 

Nivea

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I love iPhone but I think my 7 Plus will be my last one, prices are rising too much for so little features.

Getting a S9/10 next
 
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