Apple may reduce its orders to Korean parts suppliers by up to 30% due to sluggish sales of its new iPhone models.
A decreased order volume from Apple may hit Korean manufacturers of related parts such as displays, camera modules, multilayer ceramic chip capacitors (MLCCs) and memory chips.
The Apple iPhone XS series and iPhone XR models released in September are posting sluggish sales due to their poor performance compared to their high prices. Market watchers say shipments of the new models would be 30% less than initially expected over the next one year due to their sluggish sales.
The Wall Street Journal reported on Nov. 19 (local time) that Apple recently pruned new iPhone parts orders to some suppliers by up to one-third. This would increase trouble for Korean parts makers, such as chipmakers, who already face a global economic slowdown stemming from the U.S.-China trade dispute and belt-tightening measures among others.