Apple trims 3nm M3 demand amid MacBook and iPad sales slump as remote work shifts

Apple's highly anticipated M3 chipset is on the horizon, set to be the company's second 3nm processor following the A17 Pro. However, it seems that Apple's demand for these next-generation SoCs may not meet earlier expectations due to declining shipments of its MacBook and iPad lineup, a trend attributed to the Work-From-Home (WFH) movement reaching its saturation point.

,Apple trims 3nm M3 demand amid MacBook and iPad sales slump as remote work shifts

In a Medium blog post, analyst Ming-Chi Kuo sheds light on the situation, noting that Dutch firm ASML, known for its photolithography machines, is projected to cut EUV equipment shipments by a substantial 30 percent in the coming year. Kuo suggests that one contributing factor to this downturn is Apple's anticipated demand for the 3nm M3 chipset, which has fallen below previous estimates.

While Apple's mini-LED displays and Apple Silicon once held a competitive edge, consumer interest appears to be waning. Following the introduction of the M1, Apple's subsequent M2 failed to deliver the expected performance and power efficiency improvements. Even the A17 Pro, produced on TSMC's cutting-edge architecture, disappointed in real-world tests.

With the M3 expected to share the same N3B process as the A17 Pro, potential buyers of future MacBook and iPad models may hesitate, fearing a repetition of lackluster efficiency figures. Kuo also points out that Qualcomm's demand for 3nm chips is lower than expected due to Huawei's shift to its own Kirin SoCs, resulting in a loss of 60 million chip orders for Qualcomm.

Moreover, the Exynos 2400's impending arrival in the Galaxy S24 series is anticipated to further impact Qualcomm's demand. Both Apple and Qualcomm face ongoing challenges, making their financial performances in 2024 an intriguing subject to watch.