Apple Suppliers Set 75 Million iPhone Output for H2 2019 on Stable Demand

Covering 2018 tracks, Apple iPhone assemblers and components suppliers may make 75 million devices for H2 2019. Though geared for target output, demand and trade wars may be the stumbling blocks.

Off late, Apple assemblers and components suppliers have put up output and profit forecasts at 75 million for the second half this year based on demand for new iPhone models and services. So not much growth (rather steady demand) can be expected over last year in comparison as we gather from the Bloomberg report.

Here, we wish to recall that this year has been a turbulent one in light of the US-China, Japan-South Korea trade wars and spats galore! The overall mood of the global business and economic environment has failed to witness any signs of recovery. Apple seems, trying hard to steer clear from all this to prop its market share of smartphones. All this, with the support of seamless supplies from its partners located mainly in China, South Korea, Japan, India, etc.

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Apple iPhone Assemblers & Components Suppliers to Match Last Year’s Output

Jeff Pu, CFA, GF Securities (Hong Kong) Brokerage Limited, Hong Kong in an Oct 4, 2018 equity research report stated that “compared to the Street’s expectation of 80-85m new iPhone builds in 2H18, we forecast builds of 77m due to the short waiting times.” This also was corroborated by ace Apple Analyst Ming- Chi-Kuo who also predicted like figures for Apple iPhones in the second half of 2018.

Now, Apple iPhone production partners, including its component suppliers, will be gearing for output in the range of 75-80 million devices from all its manufacturing and assembling hubs.

Apple iPhone Assemblers and component partners like Foxconn, Wistron, Pegatron, Largan Precision Co., TSMC and others have reported a tapered or slight improvement in earning. Notably, these Apple Assemblers, component manufacturers focus on other lines besides serving the Apple range of products.

Apple iPhone XR, 2019 iPhone Models & Services to Drive Demand & Spur Production

Certain Apple products have been pronounced best seller like Apple iPhone XR due to its impressive features and technology. Thus, driving on tech fronts like Super processing speed, next-gen Face ID, Sensors, processors, TrueDepth Camera, Smart HDR, algorithms, and more. Thus, such winners from Apple backyard will drive the sales, in turn, to push up the production in the rollout process.

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Another point for rallying our argument towards the growing output of Apple iPhones will be growing demand and popularity of spin-offs like Apple Card, Apple Pay, Apple Arcade gaming service, and Apple TV+. Here too, the competition will not be far on heels for Apple to fight for pole position at the marketplace.

We have also mentioned that Apple is ramping up sourcing and production by setting up plants in India and other countries like Vietnam for reducing dependency on China by 15 to 30%. This has also lead to exports of iPhone 6 and iPhone 7 from India, which is indeed an achievement boosting production output for Apple outside China.

Rounding off, Apple’s plans to fill in new models to fuel demand for its products and in specific – iPhones. This may help get its assembler partners and component manufacturers on track to break last year’s outputs, possibly. All this will eventually help add black ink to their balance sheets, of course!

Nikhil Makwana
Nikhil runs iGB’s official YouTube channel. He is the official lensman of iGB and GB’s small studio is Nikhil’s playground, where he does all wonders with his remarkable signature. When Nikhil is not in his studio, you may spot him in a gourmet restaurant, chomping his way through some delicious food. He is a great traveler, who can go for long drives in search of good food.
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