Executive Briefings

Suppliers Hear News Loud and Clear: Demand for iPhone Dips

Suppliers are feeling the pinch of slackening demand for Apple's iconic iPhone, while the shortfall in sales growth could also affect component prices.

As one of the world's most sought-after design wins, the iPhone is beginning to lose its luster as a supplier's goldmine as Apple struggles to maintain its share in the increasingly tough smart phone market.  

As Apple forecasted that it will see its first revenue decline in 13 years during this quarter after reporting its lowest-ever rise in quarterly iPhone sales, suppliers, of course, had already responded to the lower-than-expected demand for components since last year.

Foxconn, Apple's largest contract manufacturer that depends on Apple for most of its sales, has begun laying off workers in response to slower iPhone demand. The local Taiwanese government has also offered 81.9 million yuan ($12.4 million) in subsidies to encourage Foxconn to keep more workers on the payroll, according to the Wall Street Journal.

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As one of the world's most sought-after design wins, the iPhone is beginning to lose its luster as a supplier's goldmine as Apple struggles to maintain its share in the increasingly tough smart phone market.  

As Apple forecasted that it will see its first revenue decline in 13 years during this quarter after reporting its lowest-ever rise in quarterly iPhone sales, suppliers, of course, had already responded to the lower-than-expected demand for components since last year.

Foxconn, Apple's largest contract manufacturer that depends on Apple for most of its sales, has begun laying off workers in response to slower iPhone demand. The local Taiwanese government has also offered 81.9 million yuan ($12.4 million) in subsidies to encourage Foxconn to keep more workers on the payroll, according to the Wall Street Journal.

Read Full Article