Several Taiwan manufacturers of touch panels reported on the decline in the supply of its products in December 2015 due to weak sales of iPhone 6s and iPhone 6s Plus. It is reported by Digitimes, citing informed sources.
Earlier this week Japanese media reported that Apple is going to shorten the release of new smartphones in the first quarter of this year due to the downturn of sales. Initially, the company planned to maintain production of the iPhone 6s at the level of their predecessors. However, this decision was revised on the background of the decrease of sales in retail stores, which stores have accumulated a large amount of models. Release decided to reduce by about 30% compared to the initial plan.
According Digitimes, the reduction in demand affected the financial indicators of the parts suppliers for the iPhone 6s and iPhone 6s Plus. Some Taiwan manufacturers of touch panels has reported a significant decline in sales. In particular, the company TPK Holding has reported that sales of its products in December amounted to $235 million, 38% less than in November and 41% less than in December 2014. This has led to the deterioration of the indicator for the whole of 2015, the decline was 6.3%.
Another supplier General Interface Solution (GIS) reported on the deterioration of sales in December at 32%, arguing that blame for the iPhone 6s and iPhone 6s Plus. Overall for the quarter GIS could improve their sales by 38%, but this allegedly contributed to the orders from other customers.
Observers believe that Apple’s decision to cut production of the iPhone can have a negative impact on the suppliers of the displays are Japan Display, Sharp and LG Display, the manufacturer of image sensors Sony, and also TDK, Alps Electric and Kyocera. In 2013, when the Cupertino’s company has also reduced production, suppliers of components for the iPhone started to work more actively with other manufacturers.