So Far So Good…
Yesterday we indicated that rumors were circulating that Apple (AAPL) was expected to cut orders for the iPhone 13 family by between 10% and 12% due to expected delays in components, particularly semiconductors. We believe much of the speculation is based on delivery delays that have extended into November, feeding speculation that overall orders for this year will be reduced. The good news is that thus far we have not heard of any suppliers that have received order reductions from Apple, and while rarely would that data be readily available, especially this early in the cycle, with the US press so focused on supply chain issues, that kind of chatter has a way of leaking out.
Many CE supply chain participants have indicated that they are a bit more cautious about 4Q than they were in 3Q, with some citing component issues, but logic holds that anyone watching panel prices has some indication that demand for TVs has been weak, and that demand for IT products has leveled off at the least. Coupled with logistics issues and sporadic COVID-19 outbreaks in manufacturing hub cities, the prudent CEO/CFO would add a note of caution in anticipation of any of such factors increasing. We focus attention on a daily basis to signs of changes in various points in the CE supply chain, and hopefully can spot deviations from current norms as they might happen, but we note that companies have been trying to be a bit more careful about leaks, product related or otherwise, and most suppliers would not risk losing Apple as a customer by slipping some order information to a blogger. Assembling data from as many sources as possible seems to be a more realistic approach to us.
Many CE supply chain participants have indicated that they are a bit more cautious about 4Q than they were in 3Q, with some citing component issues, but logic holds that anyone watching panel prices has some indication that demand for TVs has been weak, and that demand for IT products has leveled off at the least. Coupled with logistics issues and sporadic COVID-19 outbreaks in manufacturing hub cities, the prudent CEO/CFO would add a note of caution in anticipation of any of such factors increasing. We focus attention on a daily basis to signs of changes in various points in the CE supply chain, and hopefully can spot deviations from current norms as they might happen, but we note that companies have been trying to be a bit more careful about leaks, product related or otherwise, and most suppliers would not risk losing Apple as a customer by slipping some order information to a blogger. Assembling data from as many sources as possible seems to be a more realistic approach to us.
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