Apple’s recent decline in iPhone sales is bad news for more than just shareholders. A report in the WSJ details the losses being suffered by some of Apple’s biggest component suppliers. While that’s bad news for the manufacturers, it could lead to even worse problems for Apple down the line.
The report makes for dire reading, if you’re an Asian manufacturing magnate: Foxconn, Apple’s long-term assembler, saw its first-quarter profits down 9.2%; Sharp, the screen manufacturer recently bought up by Foxconn, fell into an operating loss, as did the Sony division that makes camera modules. It’s not just Apple — profits for smartphone assemblers and component manufacturers took a dive across the board. But bad times for Apple’s iPhone manufacturers could have serious knock-on problems for iPhone production down the line.