Bad phone sales iPhone they generated big headaches for Apple's partners, and today we find out how much one of the most important lost. More precisely, those from TSMC recorded in Q1 2019 the biggest decrease in profit in the last 7 years, and everything is attributed to weak sales of iPhone phones, and to the reduction of component orders for them.
According to a survey conducted among the directors of no less than 18 partners of the Apple company, it is clear that the sales of iPhone phones have decreased by several million units. We told you yesterday that the current estimates are that Apple will sell at least 10 million iPhones less than in Q1 2018, which represents losses of several billion dollars.
iPhone sales affect the profits of Apple's partners
The decrease in demand for components dedicated to iPhone phones is a very clear sign that sales are decreasing, and we have been hearing this kind of information for several months. Now we learn that the profit of TSMC, the company that produces all iPhone and iPad processors released in the last 3 years, announced a 32% decrease in profit in Q1 2019 compared to Q1 2018.
OTR says it surveyed 18 Asian supply chain executives about iPhone orders and demand during the quarter, concluding that Apple will likely miss expectations. The firm attributes the miss to "poor demand for the new XR and XS models. TSMC forecasts second-quarter revenue of $7.55 billion to $7.65 billion. That would be 2.5-3.8 percent lower than the year ago, but better than a steep 16 percent drop in the first quarter.
The decrease recorded by TSMC in terms of profit is huge, and this makes it clear that Apple would have really sold at least 10 million less iPhone units than in Q1 2018. TSMC had announced since January, right after Apple , that its profit for Q1 2019 will be lower than it thought, blaming the drop in smartphone sales, not to mention the iPhone.
iPhone has big problems, without any solution
TSMC does not expect to register a better situation in Q2 2019 either, estimating that profit will decrease by up to 3% also due to the problems that iPhone phones have. On the other hand, TSMC expects that in Q3 and Q4 In 2019, the situation should "correct", and iPhone sales should bring better profit, but everything also depends on the success of future products.
Apple has been having problems for several months with the sales of iPhone phones, and the price reductions do not seem to have helped in one way or another, at least until now.
