London: Apple Inc. supplier AMS AG shares tumbled after warning on negative operating margins because of low production capacity at its Singapore factories—yet another iPhone supplier to warn of shaky demand.

The poor short-term guidance given by Austrian-based AMS late Monday was heavily impacted by lower iPhone X Volumes, Baader Helvea AG analyst Guenther Hollfelder said in a note.

Shares in AMS fell as much as 14% to 82.44 Swiss francs Tuesday in Zurich, where the stock is listed. The stock has increased 8.1% so far this year, as of the end of trading Monday. The company expects second-quarter revenue of $220 million to 250 million, up 10-25%year-on-year and below estimates of 304.9 million euros ($372 million), according to data compiled by Bloomberg.

AMS produces optical sensors for mobile phones, which manage colour, brightness, and whether the handset is being held against the ear, and has recently expanded into 3-D sensors. Its second-quarter sales guidance “corresponds with about 20-25 million less iPhone X units based on our calculations," Hollfelder said.

Investors have been looking for clues regarding demand for the new iPhone X. Apple’s five largest device assemblers reported a sharp slowdown in monthly sales after peaking at the end of last year, suggesting demand for the high-end device may be fading.

Key suppliers such as Hai Precision Industry Co. and Pegatron Corp. reported a combined 8% rise in their total sales across the March quarter, but growth slowed sharply later in the period. Apple’s main chip supplier Taiwan Semiconductor Manufacturing Co. predicted current-quarter sales about $1 billion less than analysts had projected.

Shares in Apple, which is set to post quarterly results on 1 May, have fallen just over 7% over the past three days. Analysts at Morgan Stanley cut their forecasts on Friday for iPhone shipments. The Philadelphia Semiconductor Index has also posted a 3-day loss of just under 7%.

AMS’s first quarter adjusted earnings came in at $77.3 million, below estimates of $82.9 million. Adjusted operating margin in the second quarter is expected to be around negative 20-25%, compared to a positive 17% in the first quarter.

“This is all Apple, specifically iPhone X," said Neil Campling, senior analyst at Mirabaud Securities Ltd. Bloomberg

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