Earlier this week Apple acknowledged through a letter signed by Tim Cook that the company’s forecasts for this first quarter of 2019 would be reduced due to, among other factors, the conflict in China and a low demand for iPhone XS and XR in this country. This fall is also affecting third parties such as its suppliers of camera lenses for the iPhone, which have already seen their revenues fall over the Christmas period.
Thanks to a report from Bloomberg, we have learned that the company Largan Precision Co , supplier of the camera lenses that Apple incorporates into its iPhone, has suffered a drop in sales of 33.9% annually reaching almost $105 billion in sales in the month of December. These figures may seem high, but for this type of company it is a very representative drop in revenue.
Apple’s supplier Largan has seen its revenue reduced
It should be noted that Largan already predicted this drop in revenue as his sales forecasts were in line with Apple’s expectations published on Monday. The positive side for the company is that its revenue does not depend only on the iPhone but it also provides camera lenses for other large technology companies such as Huawei and Samsung.
That’s how Bloomberg reported the data on Largan:
For Jeff Pu, analsta of GF Securities, the decline in demand for the iPhone in China that affected Largan could be offset by the better performance of other Chinese companies such as the already mentioned Huawei, which is being one of the best positioned in the Asian country when it comes to consumers choosing an alternative to Apple’s iPhone.
However, the case of Largan is very specific as it does not focus its production solely and exclusively on the iPhone, but there are other manufacturers that do depend almost entirely on Cupertino’s company and it is likely that over the course of these weeks we will learn how this break in sales by the company led by Tim Cook affects them.