Apple subcontractors scaling down their expectations

According to a Wall Street analyst, suppliers who manufacture components for Apple’s iPhone are scaling down their projections for the firm’s 12th generation devices.

In a note to clients, RBC Capital Markets analyst Amit Daryanani said discussions with the firm’s supply chain partners have shown that Apple expects to manufacture between 80 million and 90 million new-generation iPhones during the second half of 2018.

This is up to 33% lower than the expectations these same suppliers had a year ago for the present-generation versions of the iPhone 8 and iPhone X series for the second part of 2017, Daryanani said.

He added: “Compared to the very optimistic expectation for iPhone 8/X sell-through, supply chain partners now have a more subdued expectation.”
He also remarked that Apple’s supply chain partners were managing their stock levels ‘more diligently’ this time round.

The company is expected to launch three new models in September 2018: one with an LCD screen and two with OLED displays. The latter would include a revamped 5.8-inch iPhone X and a new 6.5-inch model. The LCD model could well be a 6.1-inch device sold under the iPhone 9 label.

Yesterday Apple released two special-edition red phones as part of a charitable drive to raise money for AIDS/HIV grants: an iPhone 8 and an iPhone 8 plus.

These devices can, for now, be ordered online only – but they should be in the shops on Friday.

A percentage of the proceeds for both phones will go straight to Global Funds AIDS/HIV grants. These offer prevention, testing, treatment and counselling programs that are specifically focused on preventing the virus being transmitted from mother to child.

Since it entered into a partnership with Red 12 years ago, Apple has donated well over $160m to the fund. The company is the charity’s biggest corporate benefactor.

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