Austria's AMS Becomes Latest Apple Supplier to Slash ForecastAMS AG, an Austria-based manufacturer of light sensors for smartphones, became at least the fourth key provider to the US business this week to decrease revenue estimates for the current quarter.

Shares of AMS rose up to 5.4 percent in Switzerland Thursday.

Apple is directed for its longest losing streak in more than six months as investors reassess the organization’s growth prospects. Equipped with a maturing smartphone marketplace, its strategy has been to entice customers to pay more for phones with new features like facial recognition, while sales of services from movie to audio are increasing at a quick clip. However, the company still depends upon the iPhone for the bulk of its earnings, and the jury’s still out on if its latest line-up is a bona fide hit.

The accumulation of warning signals has prompted analyst alterations from yesteryear. Guggenheim on Wednesday reported the company’s recent reliance on rising average selling prices had been”no longer sufficient” to increase growth at one time unit sales show signs of decreasing. Shares in Japan Screen, one of the quartet that decreased its sales outlook, slid 9.5 percent Thursday.

The”iPhone’s nearly 60 percent contribution to revenue and profits appearing like a headwind again,” Guggenheim wrote in a Wednesday research note.

Apple’s decision to stop disclosing unit sales for its main gadgets including the iPhone, iPad and Macbook – which Hon Hai also builds – has fueled concerns surrounding the outlook for component manufacturers that depend on volume expansion. AMS, whose biggest customer is Apple, said Wednesday it is cutting back projections for fourth-quarter earnings to $480 million to $520 million (roughly Rs. 3,444 crores into Rs. 3,730 crores), from $570 million to $610 million (roughly Rs. 4,088 crores to Rs. 4,735 crores) just last month.

AMS blamed the reduction on”recent demand changes from a significant customer client,” a similar excuse to those offered by Qorvo, Lumentum Holdings and Japan Screen this week when they, also, suddenly diminished their outlooks. Cupertino, California-based Apple enjoys to diversify its suppliers, but four major component makers reducing revenue predictions in precisely the same week could mean the company is bracing for lower than expected sales of its most recent devices.

Not one of the firms specifically cited Apple but the iPhone maker is the largest customer and biggest revenue driver for many four, according to information compiled by Bloomberg. Qorvo earns 36 percent of revenue from Apple, Lumentum produces 30 percent, AMS receives greater than 20 percent and Japan Display gets 55 percent.

AMS creates what is known as an ambient light sensor, which can help quantify how far a phone is from a user, for the Face ID facial recognition system on Apple’s iPhones. Qorvo makes wireless chips, while Lumentum makes 3D laser detectors for Face ID. Japan Screen makes smartphone screens.

Their warnings come as a once-red-hot global smartphone market has flat-lined as economic instability spreads, and a constant lack of new or innovative apparatus discourages buyers. Apple itself has reported unsatisfactory iPhone earnings and projected holiday-quarter earnings below expectations.