Apple’s troubles with the new iPhone lineup do not seem to be coming to an end. The Cupertino based technology giant has reportedly ordered a second round of supply reduction because iPhone sales are falling short of estimates. It is being said that the move is being implemented for iPhone XS, iPhone XS Max and iPhone XR (review). Besides reducing sales, the company has even laid off employees. And all of this is expected to have an effect on Apple’s multiple component suppliers.
However, it is worth noticing that Taiwan Semiconductor Manufacturing Company (TSMC), which happens to Apple‘s A12 Bionic processor’s only supplier, has not faced a major setback because of the decision taken by Apple. The main reason behind is that other manufacturers like Huawei, Qualcomm, and AMD have also given orders to the firm for 7nm chipsets.
TSMC is currently working on the 7nm HiSilicon Kirin 980 processor for Huawei’s latest flagship, Mate 20 and Mate 20 Pro. The company is also set to begin working on Qualcomm’s Snapdragon 8150 7nm chip in Q1 2019, after the chipset gets unveiled in December this year.
It has also been reported that the chip maker is working on AMD’s Radeon Instinct M160 and M150 server accelerator chips, which are scheduled to be released in Q1 2019.
But Taiwan Semiconductor Manufacturing Company is an exception. According to a report in Digitimes, Other iPhone supply chain partners are expected to see a fall in their revenues because of Apple’s decision.
For instance, the camera lens supplier Largan Precision has estimates that its revenue for November 2018 will be lower than that of October 2018. Apart from this, a report said that iPhone flexible PCB supplier Career Technology has laid off its 110 workers. That’s not all. Another iPhone assembler, whose name has not yet been disclosed has cut down its workforce in the wake of Apple’s decision.
As we mentioned earlier, this is the second time that Apple has cut orders for its new iPhone lineup. The first wave of iPhone order cuts was also announced earlier this month. The cut in orders have happened because iPhone 2018 range is experiencing lower-than-expected demand for the holiday season.