Tencent Technology News Apple Inc's supply chain is distributed in China, Japan, South Korea and other countries, suppliers' performance expectations and other information has become the leading indicator of Apple Inc's subsequent quarterly mobile phone sales and financial report data. According to the latest news from foreign media, due to the poor operating expectations of Apple Inc supplier Taiwan Semiconductor Manufacturing Co Ltd for the second quarter, Apple Inc's share price fell significantly at the start of trading on Thursday.
Apple Inc shares fell about 3 per cent in pre-market trading on Thursday and narrowed after opening, with Apple Inc shares down about 2 per cent as of Tencent's press time, according to AppleInsider, a US technology news website.
Taiwan Semiconductor Manufacturing Co Ltd is the largest chip foundry in the world, and it is also the most important foundry enterprise for Apple Inc application processors. Taiwan Semiconductor Manufacturing Co Ltd's expectations for the second quarter are also considered to be directly related to the order demand of Apple Inc chip foundry.
Taiwan Semiconductor Manufacturing Co Ltd released its first-quarter financial results on April 19th, along with a forecast for the second quarter. The company said second-quarter revenue ranged from $7.8 billion to $7.9 billion, but Wall Street analysts' average forecasts were as high as $8.8 billion, compared with a difference of $1 billion for Taiwan Semiconductor Manufacturing Co Ltd.
Lora Ho, chief financial officer of Taiwan Semiconductor Manufacturing Co Ltd, said that in the second quarter of this year, continued sluggish demand in the company's mobile products will affect results and offset the benefits of cryptocurrency mining equipment.
Charlie Chan, an analyst with Morgan Stanley, an American investment bank, said that adverse news about Apple Inc's order will affect Taiwan Semiconductor Manufacturing Co Ltd's performance in subsequent quarters, including media reports that Apple Inc reduced orders for A11 processors (the processors are used in iPhone X phones). In addition, Apple Inc's new generation of processors using 7-nanometer technology has been delayed by a month.
Apple Inc's cuts in orders for mobile phone parts such as iPhone X are no longer news. According to various reports, Apple Inc has cut orders for parts, including OLED displays, by about half, mainly because of poor sales of phones such as iPhone X.
As a result of Apple Inc's sharp reduction in orders, Samsung display's OLED screen has gone from a shortage of demand last year to an oversupply this year. Samsung is looking for new customers, including Chinese mobile phone manufacturers.
In the fourth quarter of last year, Apple Inc's sales declined against the backdrop of the launch of three new phones, which came as a surprise.
According to tradition, the first and second quarters of each year are the off-season for Apple Inc. Users who want to buy new mobile phones have already spent in the fourth quarter, and many consumers will hold money as purchasing agents, waiting for Apple Inc to launch new mobile phones in September. These factors affected mobile phone sales in the first half of the year.
Apple Inc's mobile phone sales peaked in 2015, and then fell for two years in a row. It is not known whether Apple Inc's mobile phone will continue to struggle to shake off the decline in the first half of this year.
Apple Inc will release its first-quarter results on May 1, and the company will also announce plans to use huge amounts of overseas cash to return to shareholders, including stock buybacks and increased dividends. (comprehensive / Morning Dawn)