Apple is expected to launch its first 5G smartphones in the form of iPhone 12 series later this year. The American tech giant was previously forecasted to ship 30-40 million units. But now, as per the latest report by DigiTimes, the estimation has been decremented by half to only 15-20 million units for 2020.
The report says the supply chain partners of Apple are less optimistic about mmWave-enabled iPhone 12 series set for launch this year. The competition between the suppliers is also intense given the lower number of units.
Apple has been long relying on Taiwanese manufacturers to assemble its devices. But currently, Chinese manufacturers are on the rise as the company is diversifying its supply chain.
According to the report, Apple has willingly increased the involvement of Chinese companies to assemble iPads, Apple Watches, and even AirPods. This is said to be “growing threats” for Taiwanese companies who had enjoyed their monopoly for years.
As for Apple, it is doing this to “cut costs, diversify production risks and better tap the Chinese market”.
That said, the proper reason for the lower shipments than the previous estimation is vague at the moment. It could be possibly due to the pandemic as the world economy has tanked hard in recent months.
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