“Austria’s AMS, which makes facial recognition technology, became the latest Apple supplier to cut its revenue forecast, adding to growing evidence that the latest iPhones are not selling well,” Kirsti Knolle reports for Reuters. “The Swiss-listed group cut its fourth-quarter revenue outlook by 15 percent and pushed back its medium-term targets, blaming ‘recent demand changes from a major customer.'”
“AMS, which specializes in sensors, did not name Apple as the customer, but analysts estimate that the U.S. giant accounts for 40 percent of the Austrian group’s sales,” Knolle reports. “Apple shocked investors two weeks ago with a lower than expected sales forecast for the Christmas quarter, prompting suppliers including U.S. firm Lumentum, British chipmaker IQE and screen maker Japan Display to issue warnings that pointed to weakness in new iPhone sales. Like Lumentum, AMS supplies Apple with software components needed for its FaceID technology.”
“The new AMS guidance suggested between 11 and 18 million fewer iPhones would be produced in the fourth quarter than an initially estimated 77-82 million, Credit Suisse analysts said in a note to customers,” Knolle reports. “AMS shares gained as much as 6.4 percent to 29.65 Swiss francs after a steep drop in early trade. AMS expects revenue to come in between $480 million and $520 million in the three months to Dec. 31, compared with the $570-$610 million it forecast last month.”
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MacDailyNews Take: More noise for smart Apple investors to ignore.
ASPs, not unit sales. Services growth above all else.
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