Apple's Dim Outlook Expected to Have Wide Implications

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TAIPEI, Taiwan, Jan. 03, 2019 – 

Apple's first cut in its sales forecasts since 2002 is expected to have a wider impact on its global suppliers.

The companies likely to feel the most pain – Foxconn, Lumentum, Cirrus Logic and Skyworks – count on Apple for as much as 45% of their revenue.

While Apple CEO Tim Cook blamed an unexpected economic downturn in China for the poor outlook, the impact may spread to electronics companies in the U.S., South Korea and Taiwan. One fundamental problem that Cook didn't mention was Apple's failure to come up with a new hit product in nearly a decade. Apple appears to be losing steam, according to analysts interviewed by EE Times.

"Lack of innovation is a major problem for Apple," said Andrew Lu, the head of technology with China-based Sinolink Securities. "The U.S.-China trade war drove the Chinese people to support local phones."

Apple has failed to prop up its global revenue with higher prices for the iPhone, said Mike Feibus, principal analyst with FeibusTech.

"It's been particularly unsuccessful in China, where domestic suppliers are producing such high-quality products at such compelling prices," Feibus said.

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