Apple supplier shares drop over signs of iPhone slowdown

Cornelia Mascio
Novembre 13, 2018

Lumentum Holdings Inc, the main supplier of the Face ID technology in the latest generation of iPhones, cut US$70 million off its revenue forecasts.

Based on Lumentum forecast, analysts have deduced that there is an 18 to 20 million reduction in iPhone orders from Apple. Lumentum didn't identify the customer and a spokesman for the company declined to comment, but Apple is its biggest customer, according to data compiled by Bloomberg. In its most-recent quarter, Apple reported nearly no increase in the number of iPhones sold, but revenue from that business jumped 29 percent from a year earlier. The Taiwan Weighted Index was down around 1.6 percent.

Widely respected analyst Ming-Chi Kuo writes that sales of Apple's new iPhone XR are slightly below expectations, corroborating a handful of previous reports we've seen over the past few days.

Apple shares are down more than 4 percent Monday after an iPhone supplier cut its outlook, hinting at weaker iPhone demand.

Apple stock fell 5% to $194.17 on Monday.

Other analysts are also becoming more pessimistic about iPhone sales.

Analysts said the lack of technological breakthroughs had put a cap on demand, which would persist in the coming quarters.

Apple cautioned earlier this month that it could miss Wall Street estimates for the holiday shopping season. ON Semiconductor Corp. fell 5.9 percent, Skyworks Solutions Inc. slid 5 percent, and Finisar Corp. dropped 4 percent.

More recently, Apple launched a new version of its operating system, iOS 12, that supports an unprecedented 28 of the company's devices, including models that went on sale in 2013. As Reuters reports today, many of Apple's suppliers "have lowered numbers due to their unnamed 'largest customer, ' which is Apple".

Apple said earlier this month it would stop giving the number of iPhones, iPads and Mac computers it sold in a quarter, a closely watched metric and a key indicator of the company's success.

"(This) indicates that the company itself is not confident about its performance at the moment", said Park Jung-hoon, a fund manager at HDC Asset Management, which owns Samsung Electronics shares.

Apple's iPhone XR, which boasts the iPhone X's edge-to-edge display, albeit using older LCD pixels instead of the X's high-resolution OLED screen, was widely expected to fuel a massive wave of upgrades from users of the iPhone 6S or earlier models.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE