During a year that has seen sales of the Apple iPhone struggle globally, there are subtle signs that the device is making a comeback. JP Morgan analyst Samik Chatterjee sent a note to clients today about the performance of a group made up of companies that supply Apple with parts for the iPhone. In June, for the fourth consecutive month, this group saw it’s aggregate revenues rise year-over-year. Last month’s rise was 6% compared to May’s 9% hike and a large 10% increase recorded for April. The analyst said that for the first half of the calendar year, the revenue from this group rose 12% over the same period last year, and 4% over the first 6 months of 2017.
Chatterjee also expects Apple to start moving production of its devices, including the iPhone, out of China. This could prevent Apple from worrying over further trade-tensions between the U.S. and China, but could also help the company escape paying the higher wages that Chinese assembly line workers are expected to receive eventually. And while the analyst says that moving production could take years in order to train a large group of new workers, Apple also will have to rework its supply chain as well. While India and Vietnam are the two frontrunners to replace China, the former now has its own trade issues with the U.S.