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
43 months ago


Attachment Image
Score: 5 Votes (Like | Disagree)
HJM.NL Avatar
43 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
43 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)
HJM.NL Avatar
43 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

iPhone 13 Always On Feature

iPhone 14 Pro Screen Refresh Rate Upgrade Could Allow for Always-On Display

Tuesday May 24, 2022 7:23 am PDT by
Last year's iPhone 13 Pro models were the first of Apple's smartphones to come with 120Hz ProMotion displays, and while the two iPhone 14 Pro models will continue to feature the technology, their screens could well boast expanded refresh rate variability this time round. To bring ProMotion displays to the ‌iPhone 13 Pro models‌, Apple adopted LTPO panel technology with variable refresh...
iPhone 14 Pro Purple Front and Back MacRumors Exclusive

iPhone 14 Pro Renders Highlight Multiple Design Changes

Wednesday May 25, 2022 8:56 am PDT by
Leaker Jon Prosser today shared ostensibly accurate renders of the iPhone 14 Pro, providing the most accurate look yet at what the device could look like when it launches later this year. In the latest video on YouTube channel Front Page Tech, Prosser revealed renders of the iPhone 14 Pro made by Apple concept graphic designer Ian Zelbo, highlighting a range of specific design changes...
iPhone 14 Purple Lineup Feature

Will the iPhone 14 Be a Disappointment?

Saturday May 21, 2022 9:00 am PDT by
With around four months to go before Apple is expected to unveil the iPhone 14 lineup, the overwhelming majority of rumors related to the new devices so far have focused on the iPhone 14 Pro, rather than the standard iPhone 14 – leading to questions about how different the iPhone 14 will actually be from its predecessor, the iPhone 13. The iPhone 14 Pro and iPhone 14 Pro Max are expected...
iPhone 13 Face ID

'High-End' iPhone 14 Front-Facing Camera to Cost Apple Three Times More

Monday May 23, 2022 7:05 am PDT by
The iPhone 14 will feature a more expensive "high-end" front-facing camera with autofocus, partly made in South Korea for the first time, ET News reports. Apple reportedly ousted a Chinese candidate to choose LG Innotek, a South Korean company, to supply the iPhone 14's front-facing camera alongside Japan's Sharp. The company is said to have originally planned to switch to LG for the iPhone...
apple wwdc 2022

Apple Shares WWDC 2022 Schedule, Keynote to Take Place June 6 at 10:00 a.m PT

Tuesday May 24, 2022 9:06 am PDT by
Apple today confirmed that the keynote event for the Worldwide Developers Conference will begin at 10:00 a.m. Pacific Time on June 6, the first day of WWDC. The keynote will be an online-only event, though a select number of developers have been invited to the Apple Park campus for a viewing event. In addition to confirming the keynote date and time, Apple has shared the full WWDC 2022...
2022 Apple Watch Pride Edition Bands

Apple Announces 2022 Pride Edition Watch Bands and Watch Face

Tuesday May 24, 2022 6:24 am PDT by
Apple today announced new Pride bands for the Apple Watch, with new Pride Edition Sport Loop and Pride Edition Nike Sport Loop options available. The new Pride Edition bands are available to order today for $49 on Apple.com and in the Apple Store app, and will be available at Apple Store locations starting May 26. The Pride Edition Nike Sport Loop is also coming soon to Nike.com. This...