Digitimes Reports TSMC Apple Order Cuts
Guo Mingchi: "10% Reduction Rumor Differs from Investigation Results"
[Asia Economy Reporter Cha Min-young] Guo Mingqi, an analyst at TF International Securities known as an 'Apple expert,' expressed a dissenting opinion regarding reports that Apple has reduced its semiconductor chip orders for the iPhone 14, scheduled to be unveiled this fall, by 10% from initial expectations.
According to industry sources on the 3rd, Guo stated on Twitter on the 2nd (local time), referencing media reports, "The rumor of a 10% cut does not align with my investigation of the supply chain," maintaining his previous shipment forecast for the iPhone 14. The originally anticipated shipment volumes for the second half of the year from component suppliers and contract manufacturers were approximately 90 million and 100 million units, respectively.
This directly contradicts a report by the Taiwanese local media Digitimes on the 1st (local time). Earlier, Digitimes cited sources claiming that TSMC, a supplier of semiconductor chips for the iPhone, had reduced orders for Apple. Digitimes reported, "Apple has cut its production target by 10% from 90 million units in consideration of decreased demand," adding, "The industry views Apple's revision of iPhone 14 orders as within a predictable range."
Regarding this, Guo said, "Apple's shipment forecasts generally differ by a single-digit percentage, so opinions may vary," but added, "When there is a significant change in product shipment volume before mass production due to supply chain issues, Apple usually postpones orders rather than reducing them."
Guo previously analyzed that despite the price increase of the iPhone 14 series, high demand is expected in China, one of Apple's major markets. He noted, "Recent surveys show that some distributors, retailers, and sellers in China have had to pay the highest advance payments ever to secure sufficient supply of the iPhone 14," pointing out, "Currently, the advance payments for the iPhone 14 in the Chinese market are significantly higher than those for the iPhone 13, with some regions seeing payments double in amount." This suggests robust demand despite the uncertain macroeconomic environment, including the Chinese economic downturn.
The price of the iPhone 14 series is expected to increase by about $100 per high-end model compared to the iPhone 13 series due to inflation and other factors. IT tipster 'LeaksApplePro' claimed, "The base model of the iPhone 14 to be released this year will maintain the previous price of $799, but the high-end iPhone 14 Pro model will be priced at $1,099, and the iPhone 14 Pro Max at $1,199."
The iPhone 14 series is expected to launch in September. It will consist of four models: standard, Max, Pro, and Pro Max. Design changes and performance improvements are anticipated. Unlike its predecessor, the iPhone 14 Pro model will feature a punch-hole display with oval and circular cutouts for the front camera and Face ID sensors, replacing the notch. This may increase the display's production cost.
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