Apple supplier Goertek revises 2022 revenue by 60 per cent on AirPods production blow
- Goertek’s revenues highly vulnerable as financial report shows it depends on very few clients
- The production halt adds to Apple’s supply chain woes in China following hiccups at Foxconn’s Zhengzhou plant
Goertek, based in eastern Shandong province, said in a filing to the Shenzhen exchange on Saturday that it has lowered its annual revenue estimates to as low as 1.7 billion yuan (US$244.4 million) from 4.7 billion yuan earlier.
The company said that it did not expect to resume production of the smart acoustic product this year, following the client’s request.
If first revealed that information in early November, saying the cutback would hurt revenue by 3.3 billion yuan in the fourth quarter, but added that a comprehensive “impact on the company’s business performance is still under review”.
Many analysts, including TF International Securities’ Kuo Ming-chi, indicated that the client was Apple and the product involved was the newly released AirPods Pro 2, whose assembly has been paused “more likely due to production issues rather than demand issues”.
Jefferies analysts also noted that production of AirPods Pro 2 was affected, adding that there were no other order cuts or plans to kick out Goertek from Apple’s supply chain.