Apple’s iPhone X is likely to be discontinued this year CNBC has reported.
According to the report, Apple supplier Taiwan Semiconductor Manufacturing Company (TSMC) on Thursday trimmed its full-year revenue target to the low end of its earlier forecast due to softer demand for smartphones and uncertainty in cryptocurrency mining market.
Contrary to market expectations, the the world's largest contract chipmaker, forecast net revenue is expected to be between US$7.80 to US$7.9 billion, against analysts’ projections of $8.8bn. “Our first quarter business was impacted by an unfavourable foreign exchange” said Lora Ho, SVP and Chief Financial Officer of TSMC in a statement. “Moving into second quarter 2018, continued weak demand from our mobile sector will negatively impact our business despite strength in cryptocurrency mining.”
TSMC's figure point out that in the first quarter, shipments of 10 and 16/20-nanometer accounted for 19% and 22% of total wafer revenue respectively; 28-nanometer defined as advanced technologies, accounted for 61% of total wafer revenue. Nonetheless, the report is based on the remarks of analyst Neil Campling, the co-head of Mirabaud Securities who commented on the trimmed guidance from TSMC, and the likely ripple effect it has on AMS - the 3-D sensing technology maker which is a key The face ID features.
"With the declines in iPhone X orders and the inventory issue at TSMC at record highs, which basically reflect a need to burn off inventory. Why? Because the iPhone X is dead," Campling warned in his note to CNBC. "If the iPhone X is being killed off then you may go from a production of 12 million in Q1 to potentially zero in Q2, then that is a $60 million hit alone (to revenues)," Campling noted.