Sales performance of major suppliers in the iPhone 6s device supply chain is likely to stay flat in the first half of 2016 due to decreased orders from Apple, according to industry sources.
Among major suppliers, flexible PCB makers Flexium Interconnect and Zhen Ding Technology Holding, lens module maker Largan Precision, chassis maker Catcher Technology and OEMs Foxconn Electronics and Pegatron, have been suffering declines sequentially of their monthly revenues since November 2015, the sources indicated.
Although Apple is expected to launch a 4-inch model, tentatively named iPhone 5se, in the first half of 2016, new contract orders for the new model would not be sufficient to make up the shortfalls caused by the decreased orders for iPhone 6s devices, the sources commented.
The sequential decline rates at FPCB maker Flexium Interconnect were higher than the industry average, reaching over 20% in November and 45.7% in December, the sources noted.
Zhen Ding saw its revenues decline 12.8% on month in November and 40% in December. Although revenues for January 2016 were up slightly on month, they went down significantly on year, the sources noted.
Pegatron saw its revenue slide 14% on year in January after suffering continued revenue drops in November and December 2015, the sources noted, adding that Pegatron's sales performance is expected to remain flat in February and March. |