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iPhone suppliers nervous about global market slowdown

by Justin Herrick | April 19, 2018April 19, 2018 10:00 am PST

Trouble could be ahead for Apple and its most important product as suppliers are concerned about slowing growth for the global smartphone market, Bloomberg reports.

iPhone sales have remained ahead of the competition, but overall the market is showing signs of fatigue. Taiwan Semiconductor Manufacturing Company (TSMC), which has worked with Apple many times before, recently lowered its forecast for the second quarter and failed to meet analysts’ expectations.

The belief is that, aside from saturation rising, consumers aren’t upgrading to new phones as frequently.

The International Monetary Fund (IMF) also suggested earlier this week that the industry might’ve peaked, leading to a downswing for all companies and their suppliers. And that would explain why several companies are interested in online content and services to boost revenue. Apple, too, could continue making more affordable hardware for budget-conscious consumers.

Suppliers, meanwhile, are turning to new types of customers. The report says TSMC has found new customers from companies building processors to cultivate cryptocurrencies. Still, mobile devices account for a large amount of any suppliers’ revenue. TSMC and others need phones and tablets to stay strong.

Apple’s solution is to lean on subscription-based services like iCloud and Apple Music, and there does seem to be low-cost products on the way. The iPad (2018) costs just $329, and an entry-level MacBook could debut at WWDC. The iPhone SE 2 could arrive at the develop conference, too.

All of this indicates how Apple wants to expand its portfolio with affordable products and services, which should stabilize and even lift revenue amid widespread shrinking growth.

Bloomberg

Justin Herrick

Justin is easily attracted to power buttons. His interest in technology started as a child in the 1990s with the original PlayStation, and two...

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