TAIPEI (Reuters) – Taiwan’s export orders grew less than forecast in August on unexpectedly weaker demand for new smartphones, though the government said the demand outlook for the island’s tech goods remains good. The Ministry of Economic Affairs data showed that Taiwan’s export orders rose 17.6% to $53.5 million in August from one year ago.

Although this was the 18th consecutive month of expansion it was still slower than what the median forecast for a growth of 20% in a Reuters poll.

Huang Yu-ling (head of the statistics section at the ministry) told reporters that new smartphone orders were lower than anticipated. He also said that fewer people worked from home due to pandemic lockdown rules being relaxed. This meant they had to purchase fewer laptops and tablets.

Foxconn, Taiwan Semiconductor Manufacturing Co Ltd. (TSMC) and other tech companies are key suppliers to Apple Inc. (NASDAQ;) Qualcomm Inc.

Apple’s iPhone 13 and iPad mini were unveiled last week. They expand 5G connectivity, show faster chips, sharper cameras and don’t increase the price.

The ministry said that COVID-19 case numbers could rise globally in the coming winter, adding uncertainty to the economy’s outlook.

It said that Taiwan’s export momentum will be supported by the increased availability of consumer electronics and the “flourishing demand” for electric cars.

Export orders jumped 21.4% to $55.3 million in July, compared with a year ago.

High demand during the holiday shopping season in the United States, Europe, and Asia means that the second half is usually stronger.

According to the ministry, export orders are expected to increase by 15.9%-18.9% in September compared with a year ago.

In August, orders from the United States increased 19.2% from one year ago. This is a quicker rate than the 16.5% recorded in July. Meanwhile, orders from China rose 15.9% from July. The previous month saw a 20.1% increase.

Orders from Europe rose 3.7% while orders from Japan rose 18.3%.