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As 2018 iPhone sales outlook worsens, parts suppliers brace for impact

By Jules Wang November 13, 2018, 7:30 pm

What was originally expected to be a grand harvest season for iPhone component makers has turned up more fallow than the early forecasts have predicted.

First, Apple tempered its revenues outlook for the holiday quarter, simultaneously announcing that it would no longer report unit sales for iPhones, iPads and Mac computers. With that news, brokerage houses sent their expectations down south. Now, Korean publication ETNews reports that the supply chain is taking a hit in the share market.

TrueDepth camera system maker LumenTem has cut its fourth quarter revenue outlook by the equivalent of $70 million with poor new model sales. Recent price cuts for the iPhone 8 and iPhone 7 series, which do not have features such as Face ID, have generated increased sales.


For the iPhone XS and iPhone XS Max, which use Samsung’s OLED displays, the chaebol has reportedly maintained only 10 to 20 percent capacity on its dedicated panel production line for Apple since the second half of this year. That came after a full year at maximum capacity to service the now-deprecated iPhone X before them.

Many companies that rely on Apple for a major portion of their revenues saw their stock drop yesterday, though more diversified companies like Samsung and LG have been able to offset the negative impact of the purported reduction in orders.


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