A number of media reports have previously reported that Apple's 2018 iPhone product line sales fell below expectations, and Apple has therefore reduced orders for new iPhone components. According to the latest report from DigiTimes, due to the reduction in chip orders, TSMC's exclusive supplier of TS12 in the first quarter of 2019 may be greatly affected.
TSMC has been the exclusive supplier of Apple's A-series chips since 2016, and the company is said to continue to supply Apple's exclusive A13 chip next year. Like other Apple suppliers, TSMC has also been affected by weak sales of the new iPhone. The new report pointed out that TSMC's revenue in the first quarter of 2019 is expected to decline by 14%-16%. Before the release of this report, Apple's iPhone assembler Foxconn also said that next year will be a very difficult year.
In the past two months, many analysts have lowered the expected shipments of the iPhone in the investor report. Earlier this month, there was news that Foxconn suspended the iPhone XR production increase program. The company prepared 60 assembly lines for the iPhone XR, but only 45 were put into use.
For Apple, although this doesn't sound like good news, it's still too early to conclude. Last year, many analysts predicted that consumers were not interested in Apple's new iPhone, but the results proved that this prediction is not accurate.