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
84 months ago


Attachment Image
Score: 5 Votes (Like | Disagree)
9081094 Avatar
84 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
84 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
84 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 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
iOS 26 Feature

Everything New in iOS 26 Beta 3

Monday July 7, 2025 1:20 pm PDT by
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July. Transparency In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...
apple wallet drivers license feature iPhone 15 pro

Apple Says iPhone Driver's Licenses Will Expand to These 8 U.S. States

Tuesday July 8, 2025 11:26 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Unfortunately, this feature continues to roll out very slowly since it was announced in 2021, with only nine U.S. states, Puerto Rico,...
iphone 16 pro ghost hand

5 Reasons to Skip This Year's iPhone 17 Pro

Thursday July 10, 2025 4:54 am PDT by
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...
apple account card feature

Apple Account Card Expanding to More Countries

Tuesday July 8, 2025 7:34 pm PDT by
Apple is expanding the ability to add an Apple Account Card to the Wallet app to more countries, according to backend Apple Pay changes. With iOS 15.5, Apple updated the Wallet app to allow users to add an Apple Account Card, which displays the Apple credit balance associated with an Apple ID. If you receive an Apple gift card, for example, it is added to an Apple Account that is also...
iPhone 17 Pro in Hand Feature Lowgo

Leaker Reveals Amount of RAM in iPhone 17 Through iPhone 17 Pro Max

Wednesday July 9, 2025 8:08 am PDT by
Three out of four iPhone 17 models will feature more RAM than the equivalent iPhone 16 models, according to a new leak that aligns with previous rumors. The all-new iPhone 17 Air, the iPhone 17 Pro, and the iPhone 17 Pro Max will each be equipped with 12GB of RAM, according to Fixed Focus Digital, an account with more than two million followers on Chinese social media platform Weibo. The...
iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
imac video apple feature

Apple Launching These 15+ Products Later This Year

Sunday July 6, 2025 8:05 am PDT by
The calendar has turned to July, meaning that 2025 is now more than half over. And while the summer months are often quiet for Apple, the company still has more than a dozen products coming later this year, according to rumors. Below, we have outlined at least 15 new Apple products that are expected to launch later this year, along with key rumored features for each. iPhone 17 Series iPho...