iPhone lens maker Largan’s sales suffer on slowing Chinese demand

7 January, 2019 12:00 AM printer

BEIJING: Largan Precision, which supplies camera lenses to Apple, said revenue in December fell by a third amid weakening appetite for iPhones in China.

Sales dropped 33.9 per cent from a year earlier to New Tiawanese (NT) $3.23 billion ($104.9 million), and were in line with Largan’s estimates, a company spokeswoman said on Saturday. The company, which also makes lenses for Huawei Technologies and Samsung Electronics, said revenue in January is expected to be "flattish from the previous month”, report agencies.

Apple said on January 2 that China sales came in lower than expected in the holiday quarter when it slashed its revenue outlook for the first time in almost two decades. The announcement triggered a 10 per cent decline in Apple shares the next day, the biggest drop in almost six years, and drove down the stocks of many suppliers to the company. Largan shares declined about 5 per cent over the past two sessions, according to Bloomberg.

President Donald Trump on Friday downplayed the sales results from Apple.

When asked if he was concerned about Apple's share price, he said: "I’m not. I mean look, they’ve gone up a lot.”

Shares of Apple closed at $148.26 apiece on Friday, down about 5.1 per cent over the week week. Apple shares fell 7 per cent in 2018 but are still up about 24 per cent since Mr Trump took office in January 2017.