Huawei Mate 20 expected to steal sales from struggling iPhone XR

More Evidence Emerges of Soft iPhone Sales

Apple, suppliers tumble as signs mount of weak iPhone demand

The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co, fell 2.6 percent and camera lens-maker Largan Precision Co Ltd slid 3.6 percent.

"Some people may fear that this now means that the iPhone units are going to start going negative year over year because it's easier to talk about great things and not show the details of things that aren't so great", Citi analyst Jim Suva said during the conference call. Indeed, Apple's most recent quarterly report illustrates that Apple - with more margin friendly devices in the mix - can easily generate more revenue even in the face of stagnating iPhone sales.

Consumers in general are not as keen on the XR as Apple thought they would be.

The latest evidence that what's bad for Apple can be awful for suppliers came on two continents within hours of each other.

According to a new report by Reuters, at least three iPhone suppliers have issued warnings on results to Apple that suggest weakening iPhone sales, causing the company's stock to hit a three month low today.

'Up through the first half of 2019 we likely won't see any breakthrough'.

Lumentum, which supplies FaceID components for the iPhone XS, XS Max, and XR, has reduced its profit and revenue forecasts thanks to reduced orders from Apple.

Apple warned earlier this month that sales for the crucial holiday quarter would likely miss Wall Street expectations, which CEO Tim Cook blamed on weakness in emerging markets and foreign exchange costs. Shares of Lumentum plummeted a record 33 per cent while Apple dropped 5 per cent. Oclaro Inc., which is being bought by Lumentum, lost 12 per cent, its biggest drop since April.

JPMorgan analysts said iPhone unit sales could decline on an annual basis in both 2018 and 2019.

Among other Apple suppliers in the region, Hong Kong-based acoustic components maker AAC Technologies Holdings Inc fell more than 6 percent.

"(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. "With our proven ability to deliver high volumes, years of experience, hundreds of millions of devices in the field, and new product and customer funnel, we remain confident in our leadership position in the nascent market for laser diodes for 3D sensing".

Latest News