The Austrian firm that supplies Apple with optical sensors for 3D facial recognition features in iPhones expects revenue to fall in the first quarter of 2019 (via Reuters).

iphone xs vs xr
Sensor specialist AMS said its adjusted operating profit fell more than half in the fourth quarter of 2018 and it would not pay out a dividend because of slow demand from a "major customer" and restructuring costs.

AMS generated adjusted earnings before interest and tax (EBIT) of $61.9 million and revenue of $491 million in the three month through December. The company said it expects revenue to fall in Q1 2019 to $350-390 million, amid continued weak smartphone demand and a seasonal first-quarter dip in the consumer market.

AMS provides Apple with the optical sensors in its TrueDepth camera system featured in the iPhone XR, XS, XS Max, and 2018 iPad Pro. The Austrian group is said to generate around 45 percent of sales from Apple. Low demand for Apple's newest iPhones in China has reportedly put added pressure on AMS.

As early as November last year, reports began emerging that Apple had slashed production orders for its latest ‌iPhone‌ XS, ‌iPhone‌ XS Max, and ‌iPhone‌ XR models due to lower-than-expected demand, among other reasons.

While multiple reports have suggested the ‌iPhone‌ XR sold well over the holiday period, it did not sell as well as Apple had expected, at least in some areas around the world.

Apple lowered its earnings guidance for the first fiscal quarter of 2019 due to weak ‌iPhone‌ sales and has reportedly cut ‌iPhone‌ XR, XS, and XS Max production for the January to March quarter.

Top Rated Comments

EugW Avatar
82 months ago


Attachment Image
Score: 5 Votes (Like | Disagree)
9081094 Avatar
82 months ago
I’m always wondering how it’s possible that every supplier of Apple always run into trouble when the demand of Apple is slowing a bit. Don’t they have any margins on their products or is Apple the only one to grab the profit margins. Just wondering.
Score: 4 Votes (Like | Disagree)
69Mustang Avatar
82 months ago
I’m always wondering how it’s possible that every supplier of Apple always run into trouble when the demand of Apple is slowing a bit. Don’t they have any margins on their products or is Apple the only one to grab the profit margins. Just wondering.
No matter how much margin those companies have on their products if the volume isn't there the margins don't mean much when revenue is down. If a company sells 25 or 45 percent less YoY, the margin ain't gonna mean much to the market.
Score: 2 Votes (Like | Disagree)
9081094 Avatar
82 months ago
Some Apple suppliers rely almost entirely on Apple's only product which Apple relies on completely--the iPhone.

If your only customer sells fewer of their products that means you sell less if yours.

The iPhone is 60%+ of Apple's profits, Apple makes a lot of money selling them at if you're business depends on their business then you suffer when they suffer.

They have margins, they just only have one.
Understandable and never wise to be dependent on one customer.
Score: 1 Votes (Like | Disagree)

Popular Stories

iOS 18

Apple Releases iOS 18.5 With New Wallpaper, Screen Time Changes, Carrier Satellite Support for iPhone 13 and More

Monday May 12, 2025 10:06 am PDT by
Apple today released iOS 18.5 and iPadOS 18.5, the fifth updates to the iOS 18 and iPadOS 18 operating systems that came out last September. iOS 18.5 and iPadOS 18.5 come a little over a month after Apple released iOS 18.4 and iPadOS 18.4. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. The iOS 18.5 update has a...
iPhone 17 Pro Blue Feature Tighter Crop

WSJ: Apple Weighing Price Hikes for iPhone 17 Lineup Without Blaming Tariffs

Monday May 12, 2025 3:36 am PDT by
Apple is considering raising prices for its upcoming iPhone 17 models set to release this fall, according to people familiar with the matter cited by The Wall Street Journal. The company reportedly aims to pair the potential price hikes with new features and design changes to justify the increased cost to consumers, rather than attributing them to U.S. tariffs on goods from China. The...
tvOS 18 Feature

Apple Releases tvOS 18.5

Monday May 12, 2025 10:01 am PDT by
Apple today released tvOS 18.5, the latest version of the tvOS operating system. tvOS 18.5 comes a little over a month after the launch of tvOS 18.4, and it is available for the Apple TV 4K and Apple TV HD models. tvOS 18.5 can be downloaded using the Settings app on the ‌Apple TV‌. Open up Settings and go to System > Software Update to get the new software. ‌Apple TV‌ owners who have...
macOS Sequoia Feature

Apple Releases macOS Sequoia 15.5

Monday May 12, 2025 10:10 am PDT by
Apple today released macOS Sequoia 15.5, the fifth major update to the macOS Sequoia operating system that launched last September. macOS Sequoia 15.5 comes a little over a month after the launch of macOS Sequoia 15.4. Mac users can download the ‌‌‌macOS Sequoia 15.5‌‌‌ update through the Software Update section of System Settings. It is available for free on all Macs able to run ...
iOS 18

iOS 18.5 Expected This Week With These New Features

Monday May 12, 2025 7:20 am PDT by
Following more than a month of beta testing, Apple is expected to release iOS 18.5 to the general public this week. While the software update is relatively minor, it still includes a handful of new features and changes for iPhones. Below, we recap everything new in iOS 18.5. Pride Wallpaper Apple recently announced its 2025 Pride Collection, including a new Apple Watch band, watch face,...
Apple Logo Spotlight Blue

Report: Apple Preparing to Launch Mind-Control Support for iPhones

Tuesday May 13, 2025 6:18 am PDT by
Apple is planning to allow users to natively control iPhones, iPads, and other devices using brain signals later this year, The Wall Street Journal reports. The initiative involves a partnership with Synchron, a neurotechnology startup that produces an implantable brain-computer interface (BCI) device called the Stentrode. The Stentrode enables users with severe motor impairments, such as...