Two iPhone makers report disappointing February earnings


iPhone_6 Plus_Frozen_Snow
The iPhone market's not as hot as it once was.
Photo: Ste Smith/Cult of Mac

Call it the cyclical nature of being an Apple supplier if you want, but two iPhone manufacturers have reported their lowest consolidated revenues since March 2014, with “slow sales of iPhone 6s and iPhone 6s Plus” cited as one of the reasons.

The two suppliers are smartphone lens module maker Largan Precision and Catcher Technologies, which supplies the metal casings for the iPhone 6s. Largan’s revenues dropped 36.85 percent on-month in February and 22.11 percent on year. Catcher’s revenues, by comparison, dropped 33.12 percent on month and 7.50 percent on year.

It should be noted that slowing iPhone sales don’t necessarily account for the whole decline. There are other potential reasons, too, such as fewer working days last month due to the 2016 Lunar New Year holiday. Judging iPhone supply and demand by the rise and fall of supplier orders and revenue can also be less than accurate.

With that said, Tim Cook has been open about the likelihood that iPhone sales may stop growing for the first time ever this quarter — and, while acknowledging this could be Apple’s effort to set Wall Street’s expectations low, ready to exceed them — today’s dual reports appear to back up Cook’s assertions.


  • David Kaplan

    Why are we surprised? They literally forecasted a decrease for this quarter. It’s also a slow iPhone quarter anyway. People are getting ready for the 7.

    • Stetch

      Yeah. Its not like I’m gonna buy a 6S now. Feels kind of stupid.

  • Yikes! A bad quarter for a couple of Apple vendors!! Apple is DOOMMED yet again. Even when Apple turns in its highest ever quarterly sales, their stock price goes down. The company is held to ridiculous standards and some kind of non-Euclidian math and logic that defies description. Apple’s growth from a niche company has been astounding, yet no amount of growth has been able to fully satisfy analysts, who routinely predict Apple falling on its nose and never being able to get up. Come on, Apple has been the standard setter in computer graphic user interfaces (copied by Microsoft for Windows), music players (copied, dismally, by Microsoft for the Zune), smartphones (copied by Samsung, Hwawei, Xiomi, LG and everyone else) and tablets (again copied by everyone), but they seem to never catch a break for all the great technology and devices they’ve introduced, no matter how much they’re emulated by other companies.

    • Stetch

      Yeah they have crazy amount of pressure no matter what they do.

  • Gregg Thurman

    Wow. Never thought I’d see an Internet ‘journalist’ actually (and accurately) attribute an Apple supplier’s poor performance to factors other than Apple’s imminent demise. Well done. Luke, you could have also pointed out that, historically Apple revenue drops (from December results to March results) by about 20%, making Largan’s and Catcher’s results, so far this quarter, entirely within Apple’s historic performance range.

    • Luke Dormehl

      I don’t disagree with your “comment.” I’m not trying to make some over-arching point about Apple being doomed by noting the reported revenues of two suppliers; just putting it in context with Tim Cook’s own acknowledgement that the iPhone business may slow this quarter.