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Two major Apple suppliers take a big hit as iPhone sales continue to stumble

May 15, 2019

Foxconn and Japan Display reported disappointing financial results this week as the effects of slowing iPhone sales ripple through Apple’s supply chain.

Foxconn sales dipped 17.7% in the first quarter of 2019 to $637.26 million.

Japan Display said Wednesday that mobile display sales, which make up 73.3% of its total sales, were down 17.2% year over year. Japan Display blamed its sales decline on customers moving to OLED screens in flagship phones, instead of using traditional LCD screens. It also pointed to “the slowdown of China’s and the global smartphone market” and the “prolonged life cycle of smartphones.” Japan Display is asking for 1,000 employees to retire early by the end of the second quarter.

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