Apple chipmaker AMS warns of ‘subdued’ smartphone demand hitting revenue

Shares in Austrian chipmaker AMS slipped more than 13 per cent today, after the iPhone supplier warned investors about a smartphone slowdown.

The firm revised down its revenue expectations for the current quarter to between $350m (£270m) and $390m, reflecting continued "subdued smartphone demand" globally. 

Reporting its results for the three months to 31 December, AMS said it would not be paying a dividend for 2018 after its profit fell by more than half in the fourth quarter. The decline was blamed on slowing demand from a major customer, and business restructuring costs.

Adjusted earnings before interest and tax for the fourth quarter were $61.9m, with revenues of $491m. 

Read more: Apple soothes investor fears by topping estimates in first quarter result

The firm provides Apple with optical sensors used for facial recognition technology. Apple downgraded its revenue expectations for the previous quarter last month, its first warning in 15 years, due to global market conditions and less customers upgrading their iPhones.

AMS' results come after several industry bedfellows posted revenue warnings this quarter, including Taiwan Semiconductor and Samsung. 

"Reflecting a more volatile end market and macro-economic environment, AMS has decided to suspend its cash dividend policy for fiscal year 2018 to focus on strengthening its business position in 2019," AMS said.