Apple’s iPhone SE is driving revenue for Taiwanese chipmakers

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Apple announces new iPhone SE release date, specs, and pricing.
Image: Apple

Apple’s decision to introduce a new budget handset has been very beneficial for several Taiwanese semiconductor manufacturers, reports DigiTimes. In addition, Patently Apple recently published a story indicating demand for the iPhone SE is more robust than initially believed.

iPhone SE Bolsters Taiwanese Component Makers’ Revenue

Last week, DigiTimes revealed Apple sourced many iPhone SEs components from Taiwanese producers despite centering its supply chain in China. King Yuan Electronics is providing backend services for Intel by manufacturing the handset’s 4G modems. Similarly, ASE Technology Holding secured a backend contract to produce the low-cost device’s Wi-Fi chips.

Apple chose Chipbond Technologies to handle the coefficient of friction packaging for the iPhone SE and tapped Win Semiconductors and Visual Photonics Epitaxy to supply its radiofrequency and power amplifier components. Moreover, the corporation tasked the Taiwanese Semiconductor Manufacturing Company (TSMC) with producing its A13 processors, which it also fabricated for the iPhone 11.

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DigiTimes also notes Pegatron, an iPhone XR assembler, played a crucial role in the production of the budget handset. The publication did not cite any hard numbers, but it mentioned Pegatron’s deal will “substantially” increase its second-quarter revenue.

However, the corporation’s fabrication strategy allowed it to release the iPhone SE in April despite COVID-19’s impact on the Sino industrial sector.

340,000 iPhone SE Preorders

Last Saturday, Patently Apple stated Chinese e-commerce platform JD.com claimed it received over 340,000 iPhone preorders. By contrast, all three versions of the iPhone 11 garnered a reported 1 million reservations in the same region. The retailer’s statement contrasts with a recent Reuters story indicating the nation’s consumers would not be interested in the mobile device because of its price point and lack of 5G connectivity.

However, JD.com addressed a primary buyer objection offering a presale discount on the low-cost smartphone. Reuters noted 10,000 users of Chinese social media platform Weibo liked a post from an individual saying they would purchase the iPhone SE if it were $30 cheaper. Also, Apple’s Sino mobile device sales increased by 19 percent year-over-year last month after falling 60 percent in February.

If Apple sees strong demand for the iPhone SE China, its Taiwanese component partners will enjoy steady business throughout 2020. In fact, local heavyweights like TSMC might be able to recover their coronavirus related losses by year’s end.

As Apple plans to release its new flagship line of iPhones in the fall, its Taiwanese semiconductor partners should be able to recover from their coronavirus related losses by year’s end.

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