Apple warns suppliers of lower parts orders for new iPhones

Apple has asked its parts suppliers to manufacture about 20 percent fewer components for iPhones in the second half of 2018, the Nikkei on Friday reported, sending the iPhone maker’s stock down 2 percent.

Apple warns suppliers of lower parts orders for new iPhones

 

Apple expects total shipments of iPhones to be launched this year to be 80 million, less than the 100 million shipments that Apple planned for around the same time last year, the financial newspaper said, citing two industry sources.

“Apple is quite conservative in terms of placing new orders for upcoming iPhones this year,” one of the sources told Nikkei.

Shares of Apple, which usually launches iPhones in the second half of the year, fell 2.2 percent to $189.20 in premarket trading. Shares of Apple suppliers AMS fell 6 percent, while those of Dialog Semi fell 4.1 pct.

The company intends to introduce three new iPhones in 2018, according to reports, and is set to start shipping in September after Apple’s annual product launch.

Apple did not immediately respond to a request for comment.

Apple sold 5.5 million Mac computers and 2.6 million iPods in the quarter.

Growing Mac sales came as the overall personal computer market shrank.

“On the Mac, it was just an absolutely blow-away quarter,” Cook said. “The back-to-school season voted, and the Mac won.”

The financial results were the best ever for a September quarter, and the fiscal year that just ended “was one for the record books,” Cook said earlier in a statement.

Apple, the world’s biggest firm by market value, closed its fiscal year with a profit of $39.5 billion on revenues of nearly $183 billion.

Trip Chowdhry at Global Equities Research said Apple’s quarterly report “handsomely beats (expectations) on both top line and bottom line.

“These results validate our investment thesis Apple is a multi-year, multi-product, multi-service and multi-geography growth company.”

Apple shares rose 1.47 per cent to $101.23 in after-hours trading following the results.

“Apple continues to hit it out of the park,” independent analyst Jeff Kagan said.

“Apple was showing strong growth, year after year, until a couple years ago. That’s when they fell and that lasted for a while. However, Apple now appears to be back.”