Cook is still confident about iPhone 7, this never goes away. Suppliers can’t understand his viewpoint; they are shocked to say the least. Ming Kuo did some calculations and released some vital statistics. The previous reports are not true, 2017 is going to be bad. The sales didn’t pick up after October, it will remain that way. Marketing efforts went in vain, Apple has no hope now. Cook thinks they will sail through this, but the reality can be different. In December, revised prices will be finalized; the units can stay with suppliers. FPCB’s bargaining power is weak; they will be in big trouble.
The pattern of sales for the sixth and seventh version is completely identical; there are many things to worry about. The demand almost became zero in China, which was their major market. These happened due to two main reasons. Android phones devastated Apple and these phones are cheap too. The shipment volume is low; phones are going out very slowly. The SE model gave some money in 2015; it will not come in 2017. Apple relied on this device to much, it disappointed them. There was no backup plan, the risks were higher naturally. TSMC is safe from this, they are already pre-booked. Apple is again looking for new suppliers now.
Shipment values should increase each quarter, the exact opposite is happening. In 2Q16, SE garnered huge demand, suppliers were happy to send out more devices. The screen size clicked, the idea clicked and Apple’s strategy clicked. High-end devices have a different market sector, affordable devices can’t consume them. Apple will let iPhone 7 perform freely; other models will not support it. The money can be a little less, but it will satisfy them. SE’s price is low too; iPhone 7 will get more cash. Suppliers will feel the fire now, Apple is already pressurizing them.
