Several key Apple (O: AAPL) vendors in Asia expect lower revenues and orders in the current quarter, and this effectively means that the annual sales of the iPhone will show the first drop since the launch of the flagship smartphone almost ten years ago.
The concerns for Apple's prospects amid falling global demand for smartphones is overshadowed by pessimistic forecasts from companies such as Taiwan Semiconductor Manufacturing (TSMC), which is the largest manufacturer of chips, and Largan Precision, which produces lenses for cameras.
According to the industry experts, the characteristic of the latest iPhone was not enough to interest users after the release of the previous model. This provokes concern that the period of Apple's innovation, together with the profit received by the company, may be nearing completion.
The company, which will report on Tuesday the results of the quarter ended in December, declined to comment on the sales forecast.
Previously, Apple representatives said that the individual data supplier cannot fully reflect the company's forecast.
Meanwhile, the TSMC Company, the chip maker for the iPhone, predicts that revenue for the first quarter in annual terms could fall by about 11 %, noting that demand for expensive smartphones must also be weak.
A more detailed picture of the prospects of Apple may come next week if key suppliers, including LG Display, SK Hynix and Samsung Electronics will reveal forecasts for the first quarter after the income statement for the quarter ended in December.
Analysts said iPhone sales may straighten during the second half of the year, when the company typically releases new products. Meanwhile, in view of competitors such as Samsung Electronics and Huawei Technologies, some providers do not share this belief.
"The pace of innovation has slowed. Apple is moving in the same direction as the other brands," - said the company's suppliers from Taiwan.