“AAC Technologies Holdings Inc , an acoustic components supplier to Apple Inc , on Thursday reported a drop of 28.7 percent to 973 million yuan ($140.38 million) in quarterly net profit, dented by lacklustre iPhone sales volume growth,” Reuters reports.

“AAC Technologies, which supplies acoustic and haptic components for Apple products such as the iPhone, said revenue in the July-September quarter dropped 8.5 percent to 4.87 billion yuan, compared with consensus estimate of 5.7 billion yuan,” Reuters reports. “The company, which is estimated by research and brokerage firm Sanford Bernstein to derive half of its revenue from Apple, saw its stock plunge 57 percent this year as trade war friction between China and the United States intensified.”

“Apple’s iPhone shipment unit in the September quarter remained almost flat from previous year at 46.9 million units,” Reuters reports. “An appreciation of the Chinese yuan and a weak product upgrade cycle resulted in a 4.2 percentage points decrease in gross profit margin for the first nine months of the year, AAC said.”

Read more in the full article here.

MacDailyNews Take: So, it actually wasn’t due to being “dented by lacklustre iPhone sales volume growth,” but, rather, as AAC stated, “appreciation of the Chinese yuan and a weak product upgrade cycle” that impacted their results. Talk about burying the lede. Fake news.

Also, what an absolute shocker that the July-September quarter would be weaker for a company which is dependent on iPhone for half its revenue! After all, nobody on earth knows that new iPhones are set to arrive the very next quarter, so there’s never any seasonal drop off in iPhone sales, especially in July, August and September.