iPhone 13 demand has suppliers prioritizing Apple

"For the Taiwan-based makers, profitability from Apple's orders is higher and more stable than that from Samsung and Chinese vendors, the sources noted."

What you need to know

  • Apple's iPhone 13 is in high demand in China and Taiwan.
  • A new report says strong pre-orders mean suppliers are prioritizing Apple.

A new report says that demand for the iPhone 13 is very strong in China and Taiwan, with suppliers prioritizing Apple to keep pace.

As reported by Digitimes:

Taiwan-based makers of VCMs (voice coil motors), wire winding and other components of smartphone-use lens modules are giving priority to production for Apple, amid strong pre-sales of iPhone 13 series in China and Taiwan, according to industry sources.

According to the report, Samsung's Q3 21 smartphone sales "fell short of original expectation", and Chinese vendors like Oppo and Vivo have high inventory levels of components. With Apple having "taken over a large portion of Huawei's original market share", component makers are focusing on Cupertino. The report further notes that profitability from Apple's orders is "higher and more stable" than that of Samsung and other Chinese vendors.

The news follows reports that COVID and camera upgrades are having an impact on the iPhone 13's delivery times worldwide. From this morning:

A new report says that Apple's best iPhone, the iPhone 13, is facing lengthier delivery times because of a COVID-19 wave in Vietnam and supply issues for new camera components.

As reported by Nikkei Asia:

Buyers of Apple's new iPhone 13 are facing longer-than-expected delivery times due to the COVID wave in Vietnam and the U.S. tech giant's deployment of a new camera feature, Nikkei Asia has learned.

Reports across the board indicate a high-level of demand for the iPhone 13 compared to iPhone 12, previously Apple's best iPhone, and a few supply chain struggles that are making Apple's latest flagship very difficult for some to get hold of in a timely fashion. Popular models are showing lead shipping times in the U.S., Japan, and China of four or even five weeks.

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