Stefan Mileschin

Apple supplier sees stock plunge after profit warning

Apple supplier AAC Technologies saw its shares drop 13 per cent after the acoustic component maker said it expected first quarter net profit to fall as much as 75 percent due to reduced orders.

AAC Technologies was one of many Apple-dependent suppliers who has been suffering lately as Jobs' Mob failed to convince anyone sane to spend more money on technology which could be found for much less.

The Hong Kong-listed firm late on 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.

“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. AAC said profitability would increase due to improvement in its product portfolio, production efficiency and cost control. It also expects customers to upgrade their smartphone offerings.

The price of AAC shares had risen 29 percent so far this year as of the previous market close. The company will first-quarter earnings at the end of May.

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