Apple shares fall as supplier Lumentum revises outlook on order cuts
Bengaluru — Lumentum Holdings, which supplies parts for Apple Inc’s latest iPhones, said a large unnamed customer had cut orders, forcing it to lower its sales and profit forecasts less than two weeks after releasing the numbers. Shares in the California-based manufacturer fell 27%, while those of Apple dropped 4%. Shares of several Apple suppliers were also hit. Lumentum is one of the primary suppliers of technology that powers the Face ID feature of iPhones, with Apple accounting for 30% of the company’s revenue as of June 30. “Many suppliers have lowered numbers because of their unnamed ‘largest customer’, which is Apple. Apple got cautious in its guidance and it’s hitting their suppliers,” Elazar Capital analyst Chaim Siegel said.
Huawei Technologies and Ciena are Lumentum’s two other major customers, with each contributing 11% to its revenue. Lumentum CEO Alan Lowe said in a statement one of the company’s largest customers for 3D sensing requested to reduce orders that we...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.