Apple Provider of iPhone 3D Optical Sensors Warns of Weak First Quarter Outlook, Skips Dividend
Sensor specialist AMS mentioned its adjusted working revenue fell greater than half within the fourth quarter of 2018 and it might not pay out a dividend due to sluggish demand from a “main buyer” and restructuring prices.
AMS generated adjusted earnings earlier than curiosity and tax (EBIT) of $61.9 million and income of $491 million within the three month by December. The corporate mentioned it expects income to fall in Q1 2019 to $350-390 million, amid continued weak smartphone demand and a seasonal first-quarter dip within the client market.
AMS gives Apple with the optical sensors in its TrueDepth digital camera system featured within the iPhone XR, XS, XS Max, and 2018 iPad Professional. The Austrian group is alleged to generate round 45 p.c of gross sales from Apple. Low demand for Apple’s latest iPhones in China has reportedly put added stress on AMS.
As early as November final 12 months, stories started rising that Apple had slashed manufacturing orders for its newest iPhone XS, iPhone XS Max, and iPhone XR fashions because of lower-than-expected demand, amongst different causes.
Whereas a number of stories have steered the iPhone XR offered effectively over the vacation interval, it didn’t promote in addition to Apple had anticipated, a minimum of in some areas around the globe.
Apple lowered its earnings steerage for the primary fiscal quarter of 2019 because of weak iPhone gross sales and has reportedly lower iPhone XR, XS, and XS Max manufacturing for the January to March quarter.