Major suppliers to Apple in Taiwan recorded one other substantial sales decline in September, falling 16.4% year-over-year to NT$1.24 trillion ($38.7 billion). The drop comes regardless of the launch of Apple’s newest iPhone fashions and new Android gadgets from rivals and follows related information from the PC market.
According to an Oct. 12 Bloomberg report, the sales decline extends a downward pattern that started in 2022 for Taiwan’s contract chipmakers and electronics assemblers that offer Apple and different tech giants. The September figures mark the steepest month-to-month drop since June. For the primary 9 months of 2023, sales have fallen 8.8% in contrast to the identical interval final 12 months.
The new iPhone 15 lineup went on sale in September, with upgrades to the bottom mannequin receiving optimistic opinions. However, the iPhone launch did little to boost suppliers’ sales. This highlights the smartphone market’s maturity and Apple’s challenges in spurring demand for brand new fashions.
Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, recorded a 13.4% sales decline in September. This was higher than many analysts feared, reflecting TSMC’s power in non-smartphone segments like high-performance computing chips.
Device assemblers like Hon Hai Precision Industry (Foxconn) and Compal (*15*) posted double-digit share declines in September. Quanta Computer, one other main Apple contract producer, additionally noticed vital decreases — revealing challenges confronted throughout Apple’s Taiwan-based meeting ecosystem.
The sales downturn displays each softening shopper demand for private electronics like smartphones and market saturation in developed international locations. The subsequent catalyst for progress within the smartphone market is unclear, as new options like foldable shows have but to go mainstream.
Going ahead, Apple and its suppliers should goal progress avenues outdoors smartphones and PCs, together with new product classes like AR/VR headsets. Software and companies have turn out to be more and more important to Apple’s outcomes as {hardware} sales average — however, within the close to time period, Taiwan suppliers face extra uncertainty and potential draw back amid a sluggish international financial system and weak electronics demand.