Semiconductor company Skyworks Solutions reported its earnings for the Q2 of 2024 on April 30. The company’s financials show that the demand for the iPhone was not as good as they might have expected.
Skyworks produces chips that enable smartphones to connect to wireless networks, so its fate is directly proportional to smartphone sales. As Apple Insider suggests, the company is Skywork’s biggest client, and that’s the reason the company is regarded as a proxy for iPhone’s demand.
Last year, Skyworks’ sales to Apple accounted for 64% of its total revenue, and 85 percent of that came from iPhone sales. This makes the iPhone the single most important product for the chip-making company. For the second quarter of 2024, Skyworks reported a revenue of $1.046 billion, which is an 8.7% year-over-year decline.
Also Read: Apple To Hold ‘Let Loose’ Event on May 7; New iPads Rumoured
Skyworks Isn’t Confident About The Next Quarter As Well
Skyworks said that it witnessed "below normal seasonal trends" and "lower-than-expected end market demand" during the March quarter. The company seems to have an intention to diversify beyond smartphones and said that it wants to "leverage our connectivity technology across edge-connected IoT devices, automotive electrification and advanced safety systems, and AI infrastructure."
Skyworks doesn’t seem very confident about the next quarter either, and says that it expects the "mobile business to be down sequentially," but also suggests that this would be due to inventory clearing.
Since the company’s business heavily relies on Apple, its underwhelming performance can be taken as an indicator that the iPhone’s demand is declining, though it must be noted that Apple is not the only customer of Skyworks. Even if the wider market is showing signs of recovery, Apple’s sales took a hit during Q1 of 2024, and they are expected to fall further in China, which is a big market for the company.
Apple will soon be reporting its earnings and many experts aren’t very optimistic about the sales of the iPhone. And since Skyworks’ sales are heavily relied on Apple, it looks like the company will report slow iPhone sales for the quarter.
Also Read: Apple Vision Pro Witnesses Drop In Demand, Shipments Cut By Half
Apple Might Not Launch Vision Pro 2 Till 2026
Apple seems to have plans to avoid launching the next iteration of the Vision Pro headset anytime soon. It looks like the company will launch the Vision Pro 2 by the end of 2026, at least that’s what the latest report from Bloomberg’s Mark Gurman suggests.
In the latest edition of his "Power On" newsletter, Gurman talked about Apple’s roadmap for the Vision Pro. The analyst said that the company’s roadmap doesn’t currently have the second-gen model until the end of 2026. In February this year, Gurman said that the next version of the headset was "at least 18 months away."
As per Gurman’s sources, the company is still looking for ways to figure out a way to launch a cheaper version of the Vision Pro in the market. However, Apple isn’t fully ready with a plan on how to bring the headset at a cheaper cost.