How Apple's Cautious Approach Rattles iPhone Display Shipments: Top Analyst Explains

Amidst rising anticipation for Apple Inc.’s AAPL future iPhone models, a recent revelation by renowned analyst Ming-Chi Kuo suggests a potentially rocky road for Novatek’s display driver shipments. 

What Happened: On Monday, Kuo, an analyst at TF International Securities, made a surprising revelation regarding Apple supplier Novatek’s prospect, highlighting potentially lower-than-expected shipments of iPhone Display Driver Integrated or DDI components for next year. 

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Kuo attributed the forecasted decline to Apple’s cautious approach in adding new DDI suppliers, leading to a conservative stance that could impact Novatek’s role in the iPhone supply chain. 

The estimated reduction in Novatek’s 2024 iPhone DDI shipments is expected to exceed 30%, presenting a considerable challenge for the company. 

Kuo also threw some light on the challenges Android smartphone brands face. 

Android, owned by Alphabet Inc. GOOG GOOGL is the leading operating system for smartphones, with a market share of 71.1%, ahead of Apple’s iOS, which has a market share of 27.6%. 

Why It’s Important: Last year, Apple reportedly sold $42.6 billion worth of iPhones for its fourth quarter, less than the $43.4 billion experts had in mind. However, while announcing Apple’s Q4 earnings and revenue, CEO Tim Cook said it was not because of weaker consumer spending or demand but supply chain issues. 

Apple’s financial performance for the fourth quarter of 2021 also fell short of expectations as the tech giant faced challenges with its supply chain that impacted iPhone sales, causing a dip in revenues.  

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