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
79 months ago


Attachment Image
Score: 5 Votes (Like | Disagree)
HJM.NL Avatar
79 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
79 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
79 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

iOS 18.4 Coming Next Week With These New Features for Your iPhone

Friday February 14, 2025 6:18 am PST by
The first iOS 18.4 beta for iPhones should be just around the corner, and the update is expected to include many new features and changes. Bloomberg's Mark Gurman expects the iOS 18.4 beta to be released by next week. Below, we outline what to expect from iOS 18.4 so far. Apple Intelligence for Siri Siri is expected to get several enhancements powered by Apple Intelligence on iOS...
iPhone 17 Roundup Feature 2

iPhone Design to Change 'Significantly' This Year

Monday February 17, 2025 7:09 am PST by
Apple is set to "significantly change" the iPhone's design language later this year, according to a Weibo leaker. In a new post, the user known "Digital Chat Station" said that the iPhone's design is "starting to change significantly" this year. The "iPhone 17 Air" reportedly features a "horizontal, bar-shaped" design on the rear, likely referring to an elongated camera bump. On the other...
Apple Maps 2024

Apple Maps Might Start Showing Ads

Sunday February 16, 2025 7:22 am PST by
Apple is "exploring" the idea of showing search ads in the Apple Maps app, according to Bloomberg's Mark Gurman. Back in 2022, Gurman said software engineering was "already underway" to display ads in the Apple Maps app, but Apple did not move forward with the idea at the time. Today, he said Apple is "giving this notion more thought" again. This time around, he said Apple has yet to...
Tim Cook Apple Park

10+ Announcements Apple Could Have Rolled Into a February Event

Saturday February 15, 2025 8:00 am PST by
Apple appears to have enough upcoming product announcements to justify a full event this month, yet all signs indicate these reveals will be handled through a series of press releases instead. There are a multitude of rumors from reliable sources about specific announcements in the coming weeks, so here's everything that Apple could have feasibly included in a hypothetical February event: ...
apple launch feb 2025 alt

What to Expect From the 'Apple Launch' Next Week

Thursday February 13, 2025 11:48 am PST by
Apple has yet to announce any new devices this year, but that could change starting next week. Apple CEO Tim Cook today said to "get ready" for a "launch" on Wednesday, February 19. "Get ready to meet the newest member of the family," said Cook, in a social media post. The post includes an #AppleLaunch hashtag, along with a short video featuring an animated Apple logo inside of a circle....
apple launch feb 2025

Tim Cook Teases an 'Apple Launch' Next Wednesday

Thursday February 13, 2025 8:07 am PST by
In a social media post today, Apple CEO Tim Cook teased an upcoming "launch" of some kind scheduled for Wednesday, February 19. "Get ready to meet the newest member of the family," he said, with an #AppleLaunch hashtag. The post includes a short video with an animated Apple logo inside a circle. Cook did not provide an exact time for the launch, or share any other specific details, so...
maxresdefault

The MacRumors Show: Apple Teases Its Next Major Product Launch

Friday February 14, 2025 9:38 am PST by
On this week's episode of The MacRumors Show, we discuss the imminent Apple product "launch" that is widely expected to be the fourth-generation iPhone SE. Subscribe to The MacRumors Show YouTube channel for more videos In a social media post on Thursday, Apple CEO Tim Cook teased an upcoming "launch" of some kind scheduled for Wednesday, February 19. "Get ready to meet the newest member of...
Apple 2025 Thumb 1

Two of Apple's Oldest Products Are Finally Getting Updated This Year

Friday February 14, 2025 6:03 am PST by
Apple released the HomePod mini in November 2020, followed by the AirTag in May 2021, and both still remain first-generation products. Fortunately, rumors suggest that both the HomePod mini and the AirTag will finally be updated at some point this year. Below, we recap rumors about the HomePod mini 2 and AirTag 2. HomePod mini 2 In January 2025, Bloomberg's Mark Gurman said Apple is ...
iPhone 17 Pro Render Front Page Tech

iPhone 17 Pro With All-New Camera Bar Design Allegedly Revealed

Thursday February 13, 2025 5:49 pm PST by
Apple's next-generation iPhone 17 Pro will feature three rear cameras arranged in a familiar triangular layout, but the cameras will be housed in an all-new rectangular camera bar with rounded corners, according to YouTube channel Front Page Tech. iPhone 17 Pro camera design render created by Asher for Front Page Tech In a video uploaded today, Front Page Tech host Jon Prosser said the camera ...