Earlier today, AAC Tech an electronic components manufacturer and supplier to Apple Inc. reported 28.7 percent drop in quarterly net profit. Apple’s drop in sales volume for its iPhone was the major reason for the drop in its third-quarter profit.
AAC Technologies net profit for the quarter fell to 973 million yuan ($140.38 million). The company which supplies haptic and acoustic components for the iPhone stated the overall revenue for July-September quarter fell by 8.5 percent to 4.87 billion yuan which was lower than the company’s estimate of 5.7 billion yuan.
The company had seen its stock price fall by 57 percent in this year as the trade war between the United States and China intensified which has 50 percent of its revenue from Apple.
In September, iPhone’s shipment remained the same as last year at 46.9 million units. However, the total revenue jumped by 20 percent as the price for iPhone increased.
The company stated that a 4.2 percent decrease in gross profit margin in this year was due to weak product upgrade cycle and the appreciation of the Chinese yuan.