Jan 18, 2019 (China Knowledge) - Apple's Japanese supplier, Nidec, has, yesterday, reported a significant drop in revenue and profit. This is the first time that it has seen such a sharp drop in the past 46 years. According to Chief Executive Shigenobu Nagamori, decline in demand in Chinese market could be the main reason.
Mr. Nagamori confessed that Nidec is facing a tough business environment as a result of China's economic slowdown. He also attributes the economic concession to the trade frictions between China and the U.S.
On the same day, Taiwan Semiconductor Manufacturing Company (TSMC) also announced, at its earnings conference, that its first quarter revenue would be a worst in the recent decade. According to an announcement on TSMC's official website, gross margin for the first quarter is expected to be 43% to 45%, far below the market's expected 47.53%.
A TSMC spokesman blamed lower-than-expected sales of high-end phones for the drop in gross profit, but didn't specify whether weak demand for iPhones was the main reason.
Earlier in January, Apple Co. lowered its revenue forecast for the first quarter and attributed it to China's low economic growth. Furthermore, about 75 percent of apple's 123 major listed suppliers were facing a decline in share price in the past 52 weeks.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: email@example.com
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI