Great iPhone 13 demand is making Taiwanese suppliers prioritize Apple over its competitors?

Apple’s latest iPhone 13 lineup is getting lots of attention, and not just from Apple fans. A report from Digitimes suggests that Taiwanese suppliers prioritize Apple, as Cupertino’s orders are allegedly more stable and profitable than the ones from Samsung and other OEMs. Not only that, but it seems that Samsung sales aren’t as great as expected, meaning that suppliers are making less money from the South Korean tech giant.

The report suggests that Samsung’s Q3 sales aren’t as great as in previous years, and other big names in the industry, including OPPO, Vivo, and Xiaomi, have more than enough components in stock, which is making suppliers focus on producing parts for the upcoming iPhone 13 models.

“Taiwan-based makers of VCMs (voice coil motors), wire winding and other components of smartphone-use lens modules are giving priority to production for Apple, amid strong pre-sales of iPhone 13 series in China and Taiwan, according to industry sources.
Japan-based suppliers together take up a large portion of Apple’s orders for VCMs, wire winding and other components, and then outsource production to Taiwan-based makers, the sources said.
Samsung’s sales of new smartphones in third-quarter 2021 fell short of original expectation, and Chinese smartphone vendors including Oppo, Vivo and Xiaomi have relatively high inventory levels for components. iPhones have taken over a large portion of Huawei’s original market share, and Taiwan’s component makers are placing high hopes on iPhone 13, the sources explained.
For the Taiwan-based makers, profitability from Apple’s orders is higher and more stable than that from Samsung and Chinese vendors, the sources noted.”

Let’s remember that Apple was already planning on boosting its initial iPhone 13 production to 90 million units through the end of the year, which means a 20 percent increase over the initial 75 million units produced for the iPhone 12. In other words, both Apple and Taiwanese component makers have high expectations for the new iPhone lineup.

Source Digitimes

Via 9to5Mac

Samuel Martinez

A former bilingual teacher that left the classrooms to join the team of Pocketnow as a news editor and content creator for the Spanish audience. An artist by nature who enjoys video games, guitars, action figures, cooking, painting, drawing and good music.

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