How weak iPhone demand has affected Apple’s major suppliers

Jan

12

2019

fact that the new iPhone models are not selling as well as Apple would like it to be, perhaps, everyone already knows. In early January, the company lowered its revenue forecast for the past quarter, which entailed certain consequences . As it turned out later, the blow fell not only on Apple itself, but also on its main suppliers and, accordingly, their financial indicators.

For example, the main supplier of cameras for the iPhone, the company Largan Precision, has already announced a significant reduction in their income. The fall was about 33.9% – and in the end, the manufacturer was able to earn only $ 104.9 million in the last quarter.

South Korean company SK Hynix, which supplies memory to Apple, has also suffered seriously. Its shares for the short period fell by almost 5%. Among other things, the cost of securities decreased and the main supplier of speakers and microphones for the iPhone, the manufacturer AAC Technologies Holdings. The overall decline in stocks averaged 5.5%.

Of course, weak demand and the subsequent reduction in the production of the iPhone could not but affect the main production partner of Apple – Foxconn. According to official data, the manufacturer’s income for December fell by 8%. Although it does not directly talk about the reasons for the decline in revenue, experts are sure that the problem is in the iPhone.

Foxconn is also concerned about legal proceedings between Apple and chipmaker Qualcomm. Analysts speculate that a Cupertino- based company could transfer its production from Foxconn to Pegatron. These actions will help Apple bypass the injunction to sell the iPhone in China.

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