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Electronic Part Manufacturers are still Reeling from Apple’s iPhone Cut

On March 25 2016, Nikkei Asian Review released an article that was about how manufacturers of electronic parts are still reeling from Apple’s iPhone production cost. It seems as if the iPhone 6s and iPhone 6s plus has had a heavy emphasis on shipments of electronics parts from Japan. With this happening, it does not seem that the company has any signs of recovery.

Here’s what one of the executives at a major manufacturer has said recently.

"Apple notified us in the second half of November that it would reduce production."

Although being a supplier of a huge US giant in the mobile industry means that the supplier will benefit greatly, such suppliers will also feel affects if the huge US giant in the mobile industry is not doing well.

In the first time in three years, Japanese manufacturers are experiencing a decline in sales. Data shows that in December, numbers have dropped by 5.6%. This data was provided by the Japan Electronics and Information Technology Industries Association show.

Companies such as Alps Electric has readjusted their company’s forecast from almost 50 billion yen to 40 billion yen in January. Not only has iPhone sales underperformed, the Japan yen is not as strong as it used to be compared to the US dollar.

It seems that even Chinese and South Korean smartphone makers expect phone sales to be more stagnant.

With all this coming into play, it seems as if many manufacturers are becoming more cautious of the future and deciding to put a lower dependence on phone sales.


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