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Component Demand for iPhone X Said to Be Weakening as Production Yield Rates Improve

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The surge in component orders for the iPhone X over the last couple of months appears to be coming to an end, based on information coming out of the upstream supply chain. Component shipments for the iPhone X weakened in November, according to sources on Friday, following strong demand in September and October.
With demand for key component not growing as strong as expected, the sources are concerned that Apple may reduce its iPhone X shipment target for the first quarter of 2018. The sources pointed out that Apple's component orders for the iPhone X in November were around 30% lower than its earlier forecast.
Click to expand...
The weakened component demand reflects improved yield rates for iPhone X production, which saw Apple's global shipping estimates continue to improve in November, dropping from between 3 and 4 weeks, to 1 and 2 weeks. In the United States and in Europe, iPhone X models ordered today arrive in around a week.

Apple suppliers such as Largan Precision and Catcher Technology have seen revenues slow or begin to decline month on month, respectively. Touch panel supplier General Interface Solution (GIS), which originally expected its sales momentum to continue into 2018, also suffered a sequential decline in November revenues.

Sources expect iPhone X shipments in January and February to be similar as that seen in November 2017, before declining sharply in March. Overall, shipments are expected to be down by around 30 percent sequentially in the first quarter of 2018 because of seasonality and fewer working days caused by the Lunar New Year holidays.

At the same time, DigiTimes' sources believe Apple's iPhone shipments in the first quarter of 2018 may still be better than those recorded in the same period of 2017.

Article Link: Component Demand for iPhone X Said to Be Weakening as Production Yield Rates Improve
 
Article Link
https://www.macrumors.com/2017/12/08/component-demand-for-iphone-x-said-weakening/
Seems normal to me. We also order a higher quantity for the initial release as we expected that a certain percentage will be unusable. When you order too much you will still get the quantity you need even if a large part of it is not up to par.


What I do not get about this report: The lunar New Year is in February. How can shipments be strong in February when practically everything closes down in China during this period? I would expect shipments to be high in January and March, with a slump in February.
 
iPhone X is still Out-of-Stock from Apple recognised Premium stores in India. It's still in PreOrder status. Why?
 
These stories come out like clockwork every December /January. Have they ever once been right?

It amazes me how so many take rumors like this as gospel truth when there isn’t a track record to go with it. And if it fits a narrative you already have about the X all the more likely you’ll believe it. Since there provably won’t be much Apple news on a Friday I’m sure this will be moved from the sidebar so the site can get the additional clicks over the weekend.
 
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Crosscreek said:
It's not the super cycle phone Apple predicted because it cost too much and adds nothing special over older iPhones that produce the same experience.

My SE runs the same IOS at 1/3 the cost.
Click to expand...
Well, the demand is still high. They have just figured out how to produce it without having to throw many of the components away. These reports are normal and do not indicate how the device is selling. And Apple gave some very high expectations for this quarter so I assume they would have given out a warning by now if they were not able to meet the target.
 
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Crosscreek said:
It's adds nothing special over older iPhones that produce the same experience. My SE runs the same iOS at 1/3 the cost.
Click to expand...

Thats debatable on the consumers stand point. In terms of iOS, they are fairly similar in that respect. But in terms of what the iPhone X offers with gesture controls and in a much higher quality phone, that's where the difference really is. When you factor The OLED dislay, dual camera, wireless charging, new form factor, Face ID,ect, it's a refreshed change from the four year design with the iPhone 6/6S/7/8.

That said, the biggest hurdle is justifying the price point for the iPhone X if one finds enough value.
 
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Guys, here is the deal: There is a difference between demand for components and demand for phones in the initial phase. One is not always linked to the other.

Apple ordered additional quantites for the iPhone X as they expected a higher yield loss, so they would still be able to fulfill all the orders. Now that everyone has settled in and the yield rate is improving they can decrease the components orders so that they get just enough components to meet the demand.

It's quite easy actually. If I expect a yield loss of about 50% I order 140% - 150% of my estimated demanded quantity. As soon as the yield rate improves I can then order 100-105% of my demanded quantity which I estimated. This is how supply chain management works. The demand remains the same, however I am ordering less components.
 
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SwissGuy93 said:
Seems normal to me. We also order a higher quantity for the initial release as we expected that a certain percentage will be unusable. When you order too much you will still get the quantity you need even if a large part of it is not up to par.


What I do not get about this report: The lunar New Year is in February. How can shipments be strong in February when practically everything closes down in China during this period? I would expect shipments to be high in January and March, with a slump in February.
Click to expand...
Production is always ahead
 
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Avieshek said:
iPhone X is still Out-of-Stock from Apple recognised Premium stores in India. It's still in PreOrder status. Why?
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Not sure where you are but it’s available at the several premium resellers in New Delhi. Also, check out Paytm Mall, Flipkart (with the Big Shopping Days offers going on now) & I think I saw on Amazon (for the 64GB) as well.
 
MacRumors said:



iphone-x-duo-250x260.jpg
The surge in component orders for the iPhone X over the last couple of months appears to be coming to an end, based on information coming out of the upstream supply chain. Component shipments for the iPhone X weakened in November, according to sources on Friday, following strong demand in September and October.
The weakened component demand reflects improved yield rates for iPhone X production, which has saw Apple's global shipping estimates continue to improve in November, dropping from between 3 and 4 weeks, to 1 and 2 weeks. In the United States and in Europe, iPhone X models ordered today arrive in around a week.

Apple suppliers such as Largan Precision and Catcher Technology have seen revenues slow or begin to decline month on month, respectively. Touch panel supplier General Interface Solution (GIS), which originally expected its sales momentum to continue into 2018, also suffered a sequential decline in November revenues.

Sources expect iPhone X shipments in January and February to be similar as that seen in November 2017, before declining sharply in March. Overall, shipments are expected to be down by around 30 percent sequentially in the first quarter of 2018 because of seasonality and fewer working days caused by the Lunar New Year holidays.

At the same time, DigiTimes' sources believe Apple's iPhone shipments in the first quarter of 2018 may still be better than those recorded in the same period of 2017.

Article Link: Component Demand for iPhone X Said to Be Weakening as Production Yield Rates Improve
Click to expand...

The surge of orders is over..as it should be...Theres is only a small percentage of people willing to pay $1100 plus for a cellphone...Not saying the phone didn't sell a good amount...but just think of the amount they would have sold if a few things would have been different
 
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Crosscreek said:
It's not the super cycle phone Apple predicted because it cost too much and adds nothing special over older iPhones that produce the same experience.

My SE runs the same IOS at 1/3 the cost.
Click to expand...

You just remind Apple to finally stop giving iOS updates to SE.
 
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Smart phones have had their day. They’re the next tablet where sales will drop by 50%. They’re just not compelling anymore. I just upgraded to an iPhone 6 Plus just because a relative had one lying around.

I’ll upgrade to next years iPhone X Plus and I really doubt I’ll buy another phone for 5-10 years after that.

And yes, it needs to be cheaper. I’ll buy it for a $1000 but that means I won’t replace it anytime soon at all.
 
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