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Falling Mac Sales Have Apple’s OLED Panel Suppliers Spooked

tigaman webdesign — Tue, 09 May 2023 15:31:11 +0000

Apple plans to transition Macs and iPads to OLED displays over the next few years, but a new report out of Korea claims panel suppliers are holding back key investment in next-gen OLED production lines over rising concerns about slumping Mac sales.

Apple will launch its first OLED iPads next year and South Korean panel makers intend to use their existing Gen 6 OLED lines to cover Apple’s 2024 supply needs. But for iPads and MacBooks after that, Samsung Display and LG Display plan to build Gen 8 production lines, which yield more OLED panels per substrate than Gen 6 lines and are more cost effective.

However, according to The Elec, the two panel makers have yet to place orders for key equipment needed to build the Gen 8 production lines, which take at least a year to complete.

The outlet’s sources suggest the Korean panel maker’s hesitancy to invest is directly linked to concerns over profitability. There is no precedent for OLED panels being used in MacBooks, therefore ambiguity remains over how much Apple will be willing to pay for the panels.

But there is now growing concern over just how many units Apple will order given the recent slump in MacBook sales. Apple in its recent quarterly earnings call reported a significant year-over-year decline in Mac revenue, falling from $10.4 billion to $7.2 billion. In the previous quarter, Mac revenue was also down to $7.7 billion compared to $10.9 billion in the year-ago quarter.

The decline follows a pattern amid a severe downturn in the global PC market, with reports indicating that Apple responded earlier in the year by requesting a temporary suspension in the production of Mac processors, and they only resumed at half of supplier TSMC’s production capacity.

With OLED displays in MacBooks likely to only increase the sales price, display panel suppliers reportedly believe Apple will inevitably attempt to cut unit prices down.

Samsung in April said it plans to spend 4.1 trillion won ($4.1 billion) building Gen 8 OLED production lines up to 2026. With the Korean display maker facing demands from OLED machine suppliers to pay development fees on top of machine prices, and LG Display already in the red, both face difficult investment choices in the months ahead without guaranteed orders from Apple.

Apple reportedly plans to sequentially introduce new ‌iPad Pro and Mac with OLED displays. Display analyst Ross Young said that he expects a ‌MacBook Air‌ with an OLED panel to launch as soon as 2024, which could also be the year Apple launches an OLED iPad Pro.

Samsung is expected to have a lasting role in supplying the OLED panels, contributing to the iPad Pro, ‌MacBook Air‌, and 14- and 16-inch MacBook Pros, although the Pro models are not expected to transition to OLED displays until 2026.

Tags: OLED, The Elec

This article, "Falling Mac Sales Have Apple's OLED Panel Suppliers Spooked" first appeared on MacRumors.com

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Tim Cook: Mass layoffs a ‘last resort’ and off the table for the moment

tigaman webdesign — Thu, 04 May 2023 20:54:36 +0000

Tech companies have cut back on spending the easiest way that they know how with mass layoffs, but Apple has avoided layoffs so far, with CEO Tim Cook calling it a “last resort.”

Apple isn’t planning for mass layoffs

Silicon Valley hired a mass of people during the pandemic to account for increased demand. As the pandemic ended and an economic downturn began, demand for those products waned, and mass layoffs began.

Tim Cook: Mass layoffs a ‘last resort’ and off the table for the moment

tigaman webdesign — Thu, 04 May 2023 20:54:36 +0000

Tech companies have cut back on spending the easiest way that they know how with mass layoffs, but Apple has avoided layoffs so far, with CEO Tim Cook calling it a “last resort.”

Apple isn’t planning for mass layoffs

Tim Cook: Mass layoffs a ‘last resort’ and off the table for the moment

tigaman webdesign — Thu, 04 May 2023 20:54:36 +0000

Tech companies have cut back on spending the easiest way that they know how with mass layoffs, but Apple has avoided layoffs so far, with CEO Tim Cook calling it a “last resort.”

Apple isn’t planning for mass layoffs

Apple’s magnificent growth in this massive market could be a game changer

tigaman webdesign — Fri, 28 Apr 2023 15:54:21 +0000

Apple’s revenue from India grew by 50% in the recently concluded fiscal year, according to reports. The company’s steps to increase production and improve its retail footprint in the country could help to sustain this impressive momentum. Apple’s focus on increasing sales in India could reap rich rewards in the long run, thanks to the country’s massive addressable market.

Here are some of the key factors that contributed to Apple’s growth in India:

• Increased production: Apple has been increasing its production of iPhones in India in recent years. Due to avoiding high import tariffs, shipping, and other factors, this has made its products more affordable and accessible to Indian consumers.

• Improved retail footprint: Apple has also been expanding its retail footprint in India. The company now has over 25 retail stores in the country, which makes it easier for consumers to buy its products.

• Strong demand for premium smartphones: India is a growing market for premium smartphones. Apple’s iPhones are among the most popular premium smartphones in the country.

• Positive economic outlook: The Indian economy is expected to grow at a healthy pace in the coming years. This will create more disposable income for Indian consumers, which could lead to increased demand for Apple’s products.

Apple’s focus on India is a long-term strategy. The company believes that the country has the potential to become one of its largest markets in the world. By investing in India now, Apple is positioning itself to capture a significant share of this growing market in the years to come.

Harsh Chauhan for The Motley Fool:

Bloomberg reports that Apple’s revenue in India hit $6 billion in the 12-month period from April 2022 to March 2023.

Apple has generated $387 billion in revenue in the trailing 12 months, which means that India is still a very small portion of its business and doesn’t account for even 2% of the company’s top line. But that doesn’t mean investors should discount Apple’s massive potential in the India, especially considering the pace that market has been growing at a time when the broader smartphone market is under stress.

Smartphone shipments in India were down 10% in 2022 to 144 million units. But Apple weathered that downturn thanks to its 60% share of India’s premium smartphone segment, which includes phones priced at $500 and above. The company reportedly controlled 5.5% of the Indian smartphone market at the end of 2022, according to CyberMedia Research (CMR). It is worth noting that this is Apple’s highest-ever share in a price-sensitive market such as India and increased from 4.4% at the end of 2021.

This also tells us that Apple has massive room for growth in India. Only 4% of the country’s 700 million smartphone owners have an iPhone… [T]his market could play a key role in helping this tech stock soar in the long run.

MacDailyNews Take: India will be a main engine for driving Apple for the foreseeable future.

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