Science & Technology

Apple’s Taiwan Suppliers Report Decline in August

Apple’s main suppliers in Taiwan in August faced another decline in sales figures, which turned out to be double-digit.

Apple’s Taiwan Suppliers Report Decline in August

The economic performance indicators demonstrated by the suppliers of the American technology giant are natural and reflect the general decline in the electronics industry, which was the result of a decrease in consumer demand.

According to information available to the media, the total revenue of the largest assemblers and manufacturers in Taiwan at the end of last month was fixed at $29.6 billion. This figure is 12.3% below the result recorded for the same period last year. The negative financial dynamic has already become something like a trend that continues to exist and shows no convincing signs of disappearing soon. In July, there was also a drop in sales of Taiwanese suppliers and manufacturers. Then the financial indicator decreased by 9% in annual comparison. The total revenue of assemblers and manufacturers from Taiwan since the beginning of this year has shown a drop of 7.5%.

At the same time, the situation in the electronics market has had a negative content since last year. Consumer demand for smartphones, laptops, and other devices presented in the mentioned market is changing within the framework of negative dynamics, which means a deterioration in sales.

There are also signs of preliminary prospects for improving the state of the electronics market in terms of economic indicators. The demand for a new generation of iPhone smartphones indicates a high level of popularity of this device, which is a signal of a revival in sales towards the end of this year. The development of the American technology giant is in demand all over the world, which is why its popularity can be described as a growth point for the market in global significance.

But in the technology sector, the overall situation is not negative. Against the background of the rapid growth in demand for hardware necessary for the functioning of artificial intelligence systems, the financial performance of many companies has significantly improved, including Quanta Computer, which specializes in assembling servers for data centers. This summer, the stock price of the mentioned firm demonstrated what can be described as a dizzying rise. The company is a partner of Nvidia. In the situation of the so-called AI boom, Quanta acts as a beneficiary who improves his well-being as a result of large sales of machine intelligence accelerators produced by an American chip manufacturer. At the same time, it may take some time in the near future in order to fully begin to meet the high level of consumer demand.

The cloud division of Quanta expects that next year the sales of artificial intelligence servers will show an increase of two times compared to current volumes. These hopes are well-founded against the background of global interest not only in AI technology itself but also in its development.

Taiwan Semiconductor Manufacturing is currently the largest contract chip manufacturer in the world. The company operates, among other things, as a supplier of Nvidia AI chips and Apple custom silicon processors for iPhone, iPad, and Mac computers. Traditionally, the expert community has formed something like a standard method for assessing the level of demand based on the analysis of the performance volumes of the Taiwanese brand. But at present, this ratio of indicators is not an absolutely accurate identifier of the state of affairs in the industry. The company said that it faced a so-called bottleneck in the supply of Nvidia chips, which require the use of the most advanced packaging technology.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.