What Display Daily thinks: The Apple faithful have been up in arms about a comment by David Vogt, an analyst at USB, who is saying that coverage of Apple demand across 30 markets is mixed, not exactly a sterling endorsement. In the meantime, we know that delays to the iPhone 15 Pro Max could be hurting LG’s bottom line as the supplier to the high end iPhone 15. Yet, the well-followed and influential Ming-Chi Kuo, an analyst at TF International Securities seems sanguine about the whole thing.
There’s a sense of urgency for the smartphone industry, and its main display suppliers, LG and Samsung, because of the general downturn in the market. A good quarter of iPhone 15 sales is going to make both companies yearly financials look good after repeated quarters of negative sales and profits. Samsung seems to be getting the best end of the deal. It all seems a little rushed and desperate, and it probably looks that way because these companies have quarterly results to deliver to investors and they need a pick-me-up.
In a normal market, the iPhone 15 series would like a middling upgrade for most consumers. In a normal market, the problems with displays for the higher end products in the series for just be the normal course of business. Or, would they? Is this a sign of bigger issues that are not being addressed, in other words, are Apple and its suppliers just pushing to make something, anything, good happen? Or, are we just more sensitive to any hint of results that don’t give comfort to those waiting for an uptick in demand?
Of course, this is all about the fortunes of a handful of companies and while it may seem relevant to the broader display industry, it is only impactful in as far as providing cover for everyone else suffering through a smartphone downturn, a recession as a matter of fact.
Ming-Chi Kuo Speaks About iPhone 15 Demand
Apple soothsayer, and a financial analyst in his day job, Ming-Chi Kuo, on his Medium blog, observes that the demand for the iPhone 15 Pro Max is strong and exceeds that of last year’s iPhone 14 Pro Max. On the other hand, the iPhone 15 Pro is facing weaker demand, possibly because premium users are gravitating toward the Pro Max model. Demand for the standard iPhone 15 models remains roughly the same as last year. Long wait times for the iPhone 15 Pro Max are not just a result of high demand; production challenges and a later mass production schedule are also factors.
Kuo also addresses rumors about the Chinese government banning iPhones, saying that these led to lower market expectations for the iPhone 15. However, the actual pre-order results were similar to the iPhone 14, making them appear better than initially feared. Kuo clarifies that the ban only applies to specific segments in China, not the iPhone’s primary target customers, thus the impact is minimal.
He also comments on Huawei’s potential comeback affecting iPhone sales but notes that this hasn’t yet been visible in the Chinese market’s pre-orders for the iPhone 15. Kuo warns that Chinese e-commerce sites may show skewed pre-order numbers as they don’t require deposits. He maintains his prediction that Apple will ship approximately 80 million units of the iPhone 15 this year.
