Major iPhone parts suppliers say they have seen an ‘extraordinary’ drop in demand for Apple’s smartphone, with the Asian companies forecasting huge falls in profits as a result.
Taiwan Semiconductor, which makes the A12 Bionic chip that powers the iPhone XS, iPhone XS Max and iPhone XR, says it expects it profits to drop by 22% between January and March.
Japanese firm Nidec, which makes the motor that allows the iPhone to vibrate, says its profits for the year will slide by as much as a quarter.
"We saw big slumps in November and December," said Nidec chief Shigenobu Nagamori.
Apple’s partners are blaming the ongoing trade war between China and the United States and slow Chinese economic growth for the drop in demand.
It's thought Chinese consumers, in particular, are reticent about buying new iPhones.
Apple has slashed the cost of the iPhone XR in China as it looks to drum up sales.
Earlier this month, Apple CEO Tim Cook denied that the iPhone XR was a failure, but refused to confirm how many handsets his company had sold.
High prices and the increasing longevity of older iPhones are also being blamed for Apple’s current problems.