During a year in which sales of Apple’s iPhone struggled at the global market, there are subtle indications that the device is coming back. JP Morgan analyst Samik Chatterjee today sent a note to customers about the performance of a group of companies that supply Apple with parts for the iPhone. In June, for the fourth consecutive month, this group saw its aggregate income increase year after year.
Last month’s increase was 6% compared to the 9% increase in May and a significant 10% increase in April. The analyst said that for the first half of the calendar year, the income of this group increased by 12% compared to the same period last year and by 4% during the first 6 months of 2017.
You may wonder what this data tells us. Chatterjee pointed out that this so-called iPhone provider tracker often moves in conjunction with iPhone revenue growth.
“We believe the monthly supplier revenue trends are supporting our belief that iPhone revenue headwinds are abating despite concerns driven by the uncertainty around the [China] trade stand-off.” – Samik Chatterjee
Apple To Move Production Outside Of China
Chatterjee also expects Apple to move production of its devices, including the iPhone, out of China. This could prevent Apple from worrying about new trade tensions between the US and China, but it could also help the company escape by paying the highest wages that Chinese assembly line workers should eventually receive. And while the analyst says that moving production could take years to form a large group of new workers, Apple will also have to return to work in its supply chain. While India and Vietnam are the two pioneers in replacing China, the first has its trade problems with the US.
“The strong historical correlation between our iPhone Supplier Tracker and iPhone revenue growth leads us to conclude that iPhone revenue declines are indeed moderating and drives higher confidence in limited downside risk to our annual shipment iPhones sales forecast of ~183 mn units in calendar 2019.” – Samik Chatterjee
We are probably only seven or eight weeks away from the presentation of iPhones 2019 and the biggest aesthetic change of the new models will be visible on the back of the phone. Based on the renderings, in the upper left corner of the glass back panel, Apple is mounting a square camera module that has not been universally praised. The iPhone 11 and iPhone 11 Max will have three cameras in the module (should include a 12-megapixel primary telephoto lens, 12 MP and a new 12-megapixel wide-angle), while the iPhone 11R will have two cameras in the square housing. Inside, the new units will be powered by 7 nm A13 SoCs and could offer reverse wireless charging. As a PowerShare in the Samsung Galaxy S10 line, this feature will allow users to flip the screen of their iPhone and use the back as a wireless charging platform. This can be used to charge the case for AirPods, the Apple Watch, another iPhone or any other compatible phone. Since the battery of the host phone is used in this process, the models of iPhone 2019 are expected to have larger batteries inside.
(Via: Apple Insider)
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