Apple supplier AAC Tech suffers stock plunge after profit warning

“Apple Inc supplier AAC Technologies Holdings Inc saw its shares dropped 13 percent on Tuesday after the acoustic component maker said it expected first-quarter net profit to fall as much as 75 percent due to reduced orders,” Reuters reports.
“The Hong Kong-listed firm late on Monday forecast January-March profit to fall 65-75 percent compared with the same period a year earlier, and said its gross profit margin would narrow,” Reuters reports. “‘In addition to a usual weak seasonal quarter, the company’s revenue for Q1 2019 is expected to be significantly negatively affected by reduced orders from customers,’ AAC said in a stock exchange filing.”
“AAC supplies acoustic and haptic components to Apple, which last month said revenue from iPhone sales in the December quarter declined 15 percent from the previous year,” Reuters reports. “The announcement comes as fellow Apple supplier Luxshare Precision Industry Co Ltd late on Monday said 2018 net profit likely rose a 61 percent.”
Read more in the full article here.
MacDailyNews Take: As one would expect given Apple’s iPhone sales decline in China.
Note: Luxshare Precision Industry Co., Ltd. is a maker of cables and connectors.
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