TSMC Thinks Premium Smartphone Shipments Will Decline In 2018

Some analysts are predicting that Apple’s “real” super cycle will begin this year with the release of 2018’s iPhones, and while that remains to be seen, it seems that not everyone is so optimistic, such as TSMC who appears to be predicting that premium smartphone shipments are expected to decline in 2018.

For those unfamiliar, TSMC is one of Apple’s suppliers and is the manufacturer behind the A-series of chipsets used in Apple’s iPhones. While TSMC does not mention any company or brand by name, given their close relationship with Apple in which they reportedly hold an exclusive contract to manufacture the A-series chipsets, it’s not hard to associate the company’s comments with the iPhone.

During the company’s fourth quarter earnings briefings, C.C. Wei, co-chief executive of TSMC said, “In terms of shipment units, high-end smartphones are decreasing for this year. Mid-to-low-end smartphones will increase by several percentage points. For TSMC, overall wafer revenue for mobile phones will be flat compared with 2017.”

It is unclear as to how TSMC might have arrived at that prediction given that it might be a bit too early for Apple to have started placing orders for 2018’s A-series chipset, but we suppose we’ll have to wait and see.

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