JP Morgan: There Is Evidence That iPhone 8 Profitability Will Be Lower

Tencent Digital (Wen Xin) According to Barron's website, Rod Hall, an analyst at JPMorgan Chase, which has consistently been bullish on Apple stocks, issued a slightly disturbing view: due to rising manufacturing costs, the plan The iPhone 8 profit rate released in September next year may go down. It is widely expected that the iPhone 8 design will undergo major changes.

Hal used a research report published by his colleague Narci Chang. Naxi Chang research object includes Kecheng Technology and other apple supply chain vendors.

“Barron Weekly” stated that Naxi Chang often wrote in the report that investors believe that because the iPhone 8 will use a full-glass body instead of the current metal frame, its average selling price will be lower. “We think the market The decrease in the visible metal part means that the average selling price is lower."

However, Naxi Chang often stated in the report that the all-glass design means that the iPhone's metal support frame under the glass is more expensive to manufacture. “In the 3.5-inch iPhone 4 body, the cost of the stainless steel middle frame is not low. Since 5th, the cost of the metal casing of each generation of iPhone has been steadily rising - the only exception is the plastic casing of iPhone 5C.According to our latest forecast, (1) 4 inch iPhone SE may be eliminated next year.(2) 5.5 inches LCD screen models and 5.8-inch OLED screen models may use stainless steel middle frames, which will account for approximately 50% of iPhone sales in the second half of next year, which is approximately 40% higher than iPhone 7 Plus this year.(3) New metals The middle box may cut out more metal, reduce the signal interference of wireless charging, resulting in a 20% increase in the processing time of CNC machine tools.We expect the iPhone metal casing costs will be basically the same as the iPhone 7/7 Plus, but due to the larger size models account for a higher proportion The overall cost will increase."

"Barron Weekly" said that Hal's conclusion is that "a growing body of evidence shows that Apple will be forced to lower iPhone profit margin next year - its own media reports that next year the iPhone will adopt tight supply of OLED screens. The point of view has been spreading," but he did not disclose details.

Source: barrons

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