Apple Inc.'s AAPL iPhone 15 launch is just a few weeks away. Amidst the increasing hype in the run up to the launch, lens maker Sony isn't very optimistic about iPhone 15 demand.
What Happened: Sony, the dominant smartphone lens maker, is forecasting lower-than-expected demand for the iPhone 15 as the world goes through an economic downturn.
In its latest earnings call, Sony said that the smartphone sensor business is now expected to recover in 2024, at least, instead of the previous projection of a recovery in late 2023.
"The recovery of the smartphone market in China is slower than we expected and conditions in the US market are worsening," said Sadahiko Hayakawa, a senior general manager for finance at Sony.
Although Sony did not specify iPhone 15 in particular, Apple's upcoming flagship is the only major smartphone launch for the rest of the year.
For context, iPhone sales have been lower than normal this year – in the US, iPhone shipments fell by 6% year-on-year in the June quarter. However, the trends for everyone else are worse, with overall smartphone shipments falling by 24%.
iPhone 15 Demand To Be Lower Than iPhone 14: Noted Apple analyst Ming-Chi Kuo has also projected the demand for iPhone 15 to be lower than that of the iPhone 14. In fact, Kuo expects Apple's hardware sales in the rest of 2023 to be lower than last year's.
"Unless the demand for the iPhone 15 is better than market expectations after launch, most of the suppliers will face growth pressure in 2H23 as the demand for iPhone 15 is lower than that of iPhone 14," Kuo noted.
This is despite the iPhone 15 shaping up to be the biggest upgrade in years, with thinner bezels, improved cameras and design, denser batteries, and more sizing up to be a considerable upgrade.
Image credits – Apple
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