Apple supplier AMS cuts forecast, indicating poor iPhone demand
Austrian firm, which makes facial-recognition technology, slashes fourth-quarter revenue outlook, blaming recent demand changes from ‘a major customer’
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. The Swiss-listed group cut its fourth-quarter revenue outlook by 15% and pushed back its medium-term targets, blaming “recent demand changes from a major customer”. AMS, which specialises in sensors, did not name Apple as the customer, but analysts estimate that the US giant accounts for 40% of the Austrian group’s sales. Apple shocked investors two weeks ago with a lower-than-expected sales forecast for the Christmas quarter, prompting suppliers including US firm Lumentum, British chip maker 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. Anglo-German chip designer Dialog Semiconductor, which struck a $600m deal with the US tech giant in October, buck...
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