Some of Apple’s IC and component suppliers said some orders for the iPhone 14 series were delayed until the first quarter of 2023, according to industry sources, Digitimes reported. 2022 saw a high level of uncertainty in the smartphone market, with many Android handset makers, including Samsung Electronics, Xiaomi and Oppo, failing to meet annual sales targets. Only sales and component input for Apple’s iPhone 14 series remained stable, the sources said.
An IC distributor in Taiwan, China, which represents Apple’s radio frequency (RF) communication chips, said demand for the iPhone 14 series in 2022 is down slightly compared to demand in 2021. Nonetheless, order visibility and pull-in is significantly better compared to Android.
Sources pointed out that China Taiwan is an important part of Apple’s supply chain, with TSMC and Foxconn both having a strong presence. China-Taiwan peripheral IC, key component, optical component and passive component suppliers, as well as OSAT vendors also play an important role.
The sources said that Chinese Taiwanese manufacturers, which account for a relatively high proportion of iOS orders, are expected to maintain relatively stable operations in 2022.
However, the sources pointed out that most Taiwanese companies have invested heavily in both iOS and Android systems. Therefore, it will be difficult for iOS devices to fully compensate for the weakness of Android performance.
IC dealers pointed out that when the U.S. sanctioned Huawei, China’s domestic high-end cell phone market share was not taken away by OPPO, Vivo and Samsung. Instead, it actually stimulated the iPhone’s market share growth.
Industry insiders estimate that Apple will be one of the first companies to adopt TSMC’s advanced process. However, they are still unsure when the market will recover. The outlook for the Android market remains bearish until at least the third quarter of 2023.
IC resellers say Apple expects incoming shipments to remain stable in 2023, with the next-generation iPhone launching in September as scheduled. However, sources say Apple may delay or cancel its fourth-generation cheap model, the iPhone SE, until 2024.
What is certain is that Apple will tightly control costs and squeeze supply chain margins in 2023, the sources said. This is the result of increasing costs for advanced semiconductor processes, the ongoing upgrade of iPhone camera modules, the need to bring USB-C to the iPhone and considerations for the relocation of Apple’s production base.
