All of Apple’s iPhones feature Sony’s camera sensors, suggesting that the Japanese manufacturer benefits greatly from this partnership. With the iPhone 15 launch around the corner, both companies would have enjoyed a massive profit influx, that is, if Sony believed that Apple’s upcoming flagship lineup would help in its growth.
Sony’s estimation comes on the bases of its smartphone camera sensor business, which has been unable to generate a profit this quarter
With demand for smartphones slowing in China, the situation is equally grim in the U.S., as Apple reported a decline in global shipments by 2 percent in its Q3 2023 earnings call. If Apple fails to sell more iPhones in a single quarter, its partners, such as Sony, suffer equally. Even though the latter stated that it should benefit from a smartphone recovery in the second half of 2023, Bloomberg states that Sony has retracted its earlier statement and now believes that the recovery will happen next year.
Morningstar analyst Kazunori Ito has also said that Sony’s smartphone camera sensor division has been unable to generate profits, and the firm will have to closely monitor this segment going forward. Sony’s estimation of the lack of growth from Apple’s side, even with the impending iPhone 15 launch, likely stems from the Cupertino giant’s three previous quarters, which have all seen a decline.
Since iPhones bring in the most revenue for Apple, the company’s growth is dependant on its success, as it is not in a position right now to reduce that dependency and rely on other divisions. According to varying estimates, the iPhone 15 shipments tally is said to ship between 80-87 million for this year, though there are reports claiming that Apple could ask suppliers to make just 75 million for 2023’s final quarter.
Assuming demand remains healthy for the entirety of that three-month period, including the holiday quarter, Sony might take back its statement again. Do keep in mind that both the iPhone 15 Pro and iPhone 15 Pro are rumored to see a price hike when they officially launch, so even if they are a success, the increased revenue will benefit Apple, not Sony, because for Sony to profit off of this partnership, it needs Apple to sell a higher volume of iPhones.
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