A new report from DigiTimes says that Apple has further trimmed it iPhone production orders. This is the second time Apple has cut down the orders for its devices that will affect almost all of its supply chain partners.
Apple gets its A12 Bionic chipset manufactured from TSMC. TSMC will not be hit much harder with this reduction its orders as they are also manufacturing Huawei’s Kirin 980 chipset and Qualcomm’s upcoming Snapdragon 8150 chip using the same 7nm foundry. TSMC will be going to use the same foundry to manufacture Radeon Instinct accelerator chips in the near future.
This is the second wave of Apple’s order reduction in the wake of weaker than expected demand for the new iPhone models. Due to this reduction, many Taiwan supply chain partners have begun to feel the pinch in November.
The publication has reported this based on its sources inside the supply chain. It very difficult to very its credibility. Many credible news outlets reported the first wave of reduction in iPhone orders but it is the first time we are hearing about the second wave of such cut down on manufacturing orders. As a result of this reduction, Foxconn has reduced its workforce and have also taken other cost-cutting measures.
It is worth mentioning that DigiTimes has a very flaky track record when it comes to reporting on Apple’s supply chain related issues. So, it is advised to take this report with a pinch of salt. While there might be some truth to the report, but Apple might have stocked enough units of its new iPhones for the key holiday season and now it is reducing its orders as iPhone sales will go down from here.
Despite numerous reports of slowed down iPhone sales, the device was the most popular smartphone in China on Single’s Day (11.11).