Some new iPhone orders delayed until first quarter of 2023, suppliers say

According to Digitimes, according to industry insiders, some of Apple's IC and component suppliers have stated that some orders for the iPhone 14 series have been postponed to the first quarter of 2023.

The smartphone market faces high uncertainty in 2022, with many Android handset makers including Samsung Electronics, Xiaomi and Oppo missing their annual sales targets. According to sources, only Apple's iPhone 14 series sales and component investment have remained stable.

An IC distributor in Taiwan, which represents Apple's radio frequency (RF) communication chips, said that compared with the demand in 2021, the demand for the iPhone 14 series in 2022 will drop slightly. Still, order visibility and pull-in is significantly better compared to Android.

Sources pointed out that Taiwan is an important part of Apple's supply chain, and TSMC and Foxconn have great influence. Suppliers of peripheral ICs, key components, optical components, passive components, and OSAT manufacturers in Taiwan also play an important role.

According to sources, it is expected that Taiwanese manufacturers, which account for a relatively high proportion of iOS orders, will maintain relatively stable operations in 2022.

However, sources pointed out that most Taiwanese companies have invested heavily in iOS and Android systems. Therefore, it will be difficult for iOS devices to fully compensate for Android's performance weaknesses.

IC dealers pointed out that when the United States sanctioned Huawei, the market share of high-end mobile phones in China was not taken away by Oppo, vivo, and Samsung. Instead, it actually fueled the iPhone's market share gains.

Industry insiders estimate that Apple will be one of the first companies to adopt TSMC's advanced manufacturing process. However, they remain unsure when the market will recover. The outlook for the Android market remains bearish until at least the third quarter of 2023.

According to IC dealers, Apple expects to maintain a stable purchase volume in 2023, and the next-generation iPhone will be launched as scheduled in September. However, it is reported that Apple may delay its fourth-generation cheap iPhone SE until 2024 or cancel it.

What is certain is that Apple will strictly control costs and squeeze supply chain profits in 2023, the source said. This is the result of the increase in the cost of advanced semiconductor manufacturing processes, the continuous upgrade of the iPhone camera module, the need to bring USB-C to the iPhone, and the consideration of the relocation of Apple's production base.