The decline in sales of the iPhone affects the suppliers of electronic components, producing components for Apple’s smartphone, Dailycomm reports with reference to sources in the supply chain of the company. Partners of the American Corporation and investors fear a further slowdown and are prepared for possible negative consequences.
The Taiwanese company Foxconn, thanks to the popularity of the iPhone has turned into the largest contract manufacturer of electronics. However, in February 2016, the assembler of Apple devices have recorded a decline in turnover on an annual basis: the February revenues were on 36,64% less than in the same month of 2015. A similar situation is observed at the second major supplier, Pegatron, whose revenues in February fell by 5.1% compared with the same period last year. The downtrend indicates a possible decline in orders from Apple, specifies the edition.
Earlier it was reported that February was the worst month in the last two years for the largest provider of metal chassis for Apple devices – Catcher Technology. The trend has alarmed investors, and some of them took a wait-and-see attitude towards the companies associated with Apple. In case of deterioration of the situation it may be overabundance inventory the iPhone, which will entail a further reduction in production, says analyst at SMBC Nikko Securities hiroharu the Watanabe. According to experts, the demand for the iPhone in 2016, may drop 18% to 190 million units.
At the end of last quarter, Apple recorded a record slow growth of demand for the iPhone. Sales of smartphones increased by only 280 000 devices per year, up to 74,78 million. In this quarter the majority of market experts expect a drop in iPhone sales.
In January 2016 from media reports it became known that production of the iPhone in the first quarter could decline by 30%. Information brought down Apple’s stock and triggered the sale of securities related companies.
According to Nikkei, the list of partners Apple has over 200 companies, of which just over 40 – a native of Japan. Among them is a manufacturer of connectors for Japan Aviation Electronics Industry, supplier of electronic components Alps Electric and Sony.