Taiwan Semiconductor Manufacturing Co. (TSMC) — Apple’s go-to chip foundry — is forecasting its sharpest quarterly revenue drop in a decade, reports Reuters.
The firm slashed its Q1 2019 revenue projection by nearly 14 percent, according to the wire service.
While TSMC didn’t specifically mention the iPhone as the cause for the revised outlook, the company is the sole supplier of Apple’s A-series mobile chips.
The company told investors that a drop in the sales of high-end smartphones led to a build-up of its chip inventory.
TSMC added it expects low smartphone demand until the second half of the year when a variety of new models launch.
In the aftermath of Apple’s weaker than expected holiday sales season, Cupertino plans on reducing the number of new employees it hires.