The New iPhones From Apple Share A Serious Problem

Apple’s new iPhone XR, iPhone XS and iPhone XS Max may come with some great features but they are assumed widely to be in trouble and this resulted in the company’s share price to get hammered. Even more, the problems seem to be getting worse.

Bloomberg revealed in a new report that the Face ID component supplier, AMS AG, has been forced to cut down on its revenue estimates and they seem to put the blame in a not so subtle way on one particular company. AMS revised its fourth quarter of 2018 revenue estimates down from the heights of $610 million to new lows of $480 citing “recent demand changes from a major consumer customer.”

AMS is just the latest from a string of iPhone suppliers that announced cutbacks on their revenues. These include Hon Hai, the primary iPhone assembler, Japan Display, the screen supplier, and Lumentum Holdings which is AMS’s fellow Face ID supplier. While the primary focus has been placed on Hon Hai, the fact remains that Apple’s new iPhones are the first ones to use Face ID across the lineup (compared to last year, when only the iPhone X had this feature).

This would mean that FaceID component suppliers had the most to benefit from most of all this year. But, as you can see, this is not panning out as planned. Chaim Siegel, an analyst working for Elazar Capital spoke with Reuters, saying that “many suppliers have lowered numbers because of their unnamed ‘largest customer,’ which is Apple.”

Last month the mystery that surrounded the sales of iPhone XR was highlighted. Considered the one capable of outselling the iPhone XS Max and the iPhone XS at the same time, the iPhone XR went out of stock in just 5 days. Since then, Apple said that it is no longer reporting sales numbers.

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