Shipments of touch and memory modules by Apple’s iPhone present chain makers are anticipated to suffer foremost setbacks in the predominant quarter of 2019 due largely to disappointing gross sales of iPhone XS and XR collection products.
Apple’s top-two touch module suppliers – Well-liked Interface Acknowledge (GIS) and TPK Holding – are more seemingly to sight low voice visibility in the predominant quarter, even despite the indisputable reality that their revenues hit highs in the fourth quarter of 2018, driven by shipments to the handset and tablet sectors.
The 2 companies had been attempting forward to brisk gross sales in conserving with the launch of the LCD-primarily primarily primarily based iPhone XR, which substances their out-cell (add-on) touch modules. Alternatively, their shipments of out-cell touch modules gain been delayed to the pause of the zero.33 quarter of 2018. The extend shored up their gross sales in the fourth quarter, nonetheless since then their orders gain been slashed tremendously attributable to weaker than anticipated iPhone XR gross sales.
GIS, whose revenues for the fourth-quarter of 2018 surged 65.01% sequentially to a account high of NT$fifty one.677 billion (US$1.684 billion), is now anticipated to sight its gross sales drop as powerful as 50% sequentially in the predominant quarter of 2019.
TPK, whose fourth-quarter revenues expanded 32.5% sequentially to NT$42.645 billion, is set up of living to sight its gross sales tumble by extra than 30% sequentially in the predominant quarter, and by the an identical rate for the predominant 1/2 of the yr.
Speculation has indicatied Apple could perchance ditch 3D Power Touch technology for its subsequent-generation iPhone devices to be launched in the 2d 1/2 of 2019. Sales at GIS and TPK will be affected if that if reality be told occurs.
Apple could perchance furthermore decide to utilize OLED panels for all of its cellphones launched in 2020 and beyond, a call that could perchance extra undermine GIS and TPK’s area in the iPhone present chain.
Nonetheless, GIS and TPK could perchance peaceable be in a position to defend their shipment momentum in the predominant quarter thanks to shipments of touch solutions for two entry-level iPad models anticipated to be launched by Apple in the predominant 1/2 of the yr.
Taiwan’s suppliers are now no longer in iPhone’s memory present chain, nonetheless the high inventory stages of iPhone XS and XR gain compelled Apple to defer extra procurement of memory products, worsening the sentiment of a memory market already hit by oversupply.
Vital chip suppliers, alongside side Samsung Electronics, Micron Technology, Toshiba and SK Hynix, which had been competing for Apple’s orders for DRAM+NAND flash chips susceptible in iPhone XS Max, are if reality be told disquieted about how you potentially can defend their memory production skill occupied.
The exact recordsdata for the otherwise bearish memory market is that Android-primarily primarily primarily based smartphone makers are more seemingly to extra upgrade their hardware specs by rolling out flagship models with higher memory skill, equivalent to 8GB or 10GB RAM, in 2019. For NAND flash, China’s handset brands could perchance furthermore push up 256GB ROM to mainstream in the yr.
(This is fragment of a collection of articles in regards to the outlook of Apple’s present chain partners.)