Obsessed with technology?
Subscribe to the latest tech news as well as exciting promotions from us and our partners!
By subscribing, you indicate that you have read & understood the SPH's Privacy Policy and PDPA Statement.
News Categories

Apple supplier sees revenue decline in December due to weak iPhone demand

By Cookie Monster - on 7 Jan 2019, 12:00am

Apple supplier sees revenue decline in December due to weak iPhone demand

The Apple iPhone XS and XS Max.

The weak iPhone demand has affected the revenue of another Apple supplier.

Largan Precision, which supplies camera lenses to Apple, reported a significant drop in revenue last month. According to Bloomberg, a Largan spokeswoman said that sales dropped 33.9% from a year ago to US$104.9 million. This is in line with Largan's estimates. The revenue estimate for this month is expected to be "flattish from the previous month". 

Although Largan also makes camera lenses for Huawei and Samsung, the drop in revenue can be attributed to the weakening demand for the iPhone. Apple CEO Tim Cook has warned investors of the weaker first-quarter earnings due to "fewer iPhone upgrades" than the company had anticipated. 

Citi Research lowered its Q1 2019 iPhone production estimates while analyst Ming-Chi Kuo revised his sales forecast lower for the iPhone XR. The Wall Street Journal also claimed that the lower-than-expected demand for the 2018 iPhone models led Apple to lower production. In response, Apple reportedly reassigned some marketing staff to focus on boosting iPhone sales. 

Source: Bloomberg