Sluggish sales of iPhone X exacerbate the earnings Outlook for suppliers of spare parts. SEOUL, 28 Jan – the Rumors about sluggish sales of iPhone X adversely affect profit forecasts for the South Korean suppliers of electronic components, observers say market on Sunday.
The local stock market and observers in the industry said that the profit estimate for chipmaker SK hynix Inc. and Samsung Display and LG Display and LG Innotek, have been downgraded this year. They stated that the problems associated with the fact that sales data for the last iteration of the flagship smartphone of Apple Inc. may not meet initial expectations.
It is expected that the iPhone X with full update and new display will be sold worldwide, and some even fear that the demand will exceed the offer, but the appearance of scandal for Apple with the “battery”, high pricing and weak sales in Chinese market contributed to a reassessment of sales.
Kim Kyung-min, an analyst at Daishin Securities, said that “weak demand” for iPhone X will invariably affect the income of major companies in the production of semiconductors and displays.
Reflecting this, SK hynix and Samsung Display have lowered operating profit forecasts for the year 2018 to 16.07 trillion won (15.6 billion U.S. dollars) and of 5.31 trillion won respectively, from 16.19 trillion won and of 8.29 trillion won.
LG Display, which is supposed to be preparing to supply organic led (OLED) panels for Apple, could suffer further supplies said another source, adding that estimates of sales to LG Innotek, a local supplier of engineering services may also be affected, if the high sales of the devices will be weakened than expected.
On the other hand, some industry representatives warned that it is too early to say that the iPhone X has not met expectations.
“There are too many variables related to the sales of iPhone X, so it is best to postpone such a prediction until until Apple publish its latest earnings report,” said Park Won-Jay, the researcher, the company Daewoo Mirae Asset Co.