The launch of the iPhone SE in China has squeezed market share from local brands causing handset makers to rein in their inventory stockpiling for future component shipments, according to sources in the supply chain (via DigiTimes).

The introduction of the relatively low-priced iPhone SE into the Chinese market has reportedly affected the performance of brands including Huawei, Xiaomi Technology, Vivo, and Oppo. The intensified competition means handset makers are reluctant to build up inventories based on what they now perceive as over-confident shipment prospects, said the sources.

The conservatism follows similar trends last year when shipment numbers failed to meet expectations. Camera module makers in particular were exposed to a high level of inventories in 2015 after optimistic shipment projections, but ended up shipping only 70 to 80 percent of their stockpiles. As a result, camera module suppliers have grown skeptical of prospects from vendors marketing smartphones with dual lenses.

Sources also noted that Apple’s efforts to upgrade the internal voltage of its power supply devices from 15 volts to 20 volts to improve charging efficiency has left power supply makers with excessive inventories.

Apple is expected to include a dual-lens camera in the iPhone 7, set to be released in the fall of this year. However, according to respected KGI Securities analyst Ming-Chi Kuo, the dual camera will be exclusive to Apple’s 5.5-inch iPhone.

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Source: MAC ROUMORS