Apple Inc shares fell to their lowest in more than three months on Monday after profit warnings from three supplies raised concerns about weak iPhone sales.
Lumentum Holdings Inc, Apple’s supplier of the Face ID technology has published a forecast of a 25% reduction in profit compared with the originally planned amount.
Screen maker Japan Display Inc cut its full year guidance due to lower smartphone demand while British chipmaker IQE plc said it expects a material reduction in its financial performance in the current year.
The supplier’s warnings sent shares in Apple down 5% on Monday, making it one of the biggest losers on the Dow Jones Industrial Average.
“Many suppliers have lowered numbers because of their unnamed ‘largest customer,’ which is Apple. Apple got cautious in their guidance and it’s hitting their suppliers,” Elazar Capital analyst Chaim Siegel said.
Analysts believe that consumers, particularly in emerging markets, have recently abandoned iPhones in favor of cheaper alternatives. Apple’s dependence on higher prices could also make it vulnerable if there is a slowdown in consumer spending.