Apple Suppliers Doubt Performance Of New iPhone XS Series

Apple’s supply chain partners in Taiwan are worried that the trio of new iPhones might not perform well on the market. They doubt the handsets’ ability to sell since their prices are too high.

Industry sources told Digitimes Monday that Apple’s supply chain makers in Taiwan have qualms about their sales outlook for the fourth quarter because of the rather high pricing of the iPhone XS, iPhone XS Max and iPhone XR. They believe that the pricing of the new iPhones will likely affect sales momentum of Apple’s new products.

The iPhone XS costs $999, the iPhone XS Max costs $1,099, while the iPhone XR costs $749. According to the industry sources, Apple’s suppliers are more concerned with the two new OLED models because their price tags are higher than market expectations.

Foxconn Electronics and Pegatron are the two major companies that could be affected by the possible poor performance of the new OLED iPhones in the fourth quarter of this year. This is because both companies reportedly rely on the number of devices sold for their revenues.

The initial sales of the iPhone XS and iPhone XS Max are going to serve as major indicators for the performance of Apple’s supply chain partners. The iPhone XR is not part of this prediction because the device won’t hit stores until late October.

The supply chain makers’ concerns over the sales of the new iPhones is noteworthy because they usually are more concerned with their production capacities and whether or not they could meet the demand of the Cupertino giant.

For this year though, Apple’s Taiwanese partners won’t really need to worry about supply shortages. Since some parts and components produced for the iPhone X and older-generation models can also be used in the production of the new iPhones, it’s unlikely for supply issues to emerge at any point this year.

Speaking of the older-generation iPhones, analysts believe that sales of the iPhone 7 and iPhone 8 could stay at relatively high levels especially now that Apple has lowered the prices of the older models. This is also predicted to affect the sales momentum of the iPhone XS series.