Apple glass supplier Corning warns smartphone sales down 14%

Corning banal fell implicit 4% connected Tuesday greeting aft the institution reported a weaker-than-expected outlook for the existent quarter, blaming dilatory smartphone solid sales.

Corning makes a assortment of antithetic components and supplies galore of the apical electronics companies, similar Samsung and Apple, which reports net this week amid interest implicit slowing user electronics sales. But determination is optimism that slowing electronics income won't wounded the high-end of the marketplace arsenic overmuch arsenic little costly devices.

Corning said it expected $3.55 cardinal successful core, oregon adjusted, income for the 4th quarter, abbreviated of a FactSet expert statement of $3.75 billion.

The institution said that it would hold to spot affirmative signs earlier telling investors astir aboriginal betterment successful the business.

In the 4th ending successful September, Corning saw smartphone portion income diminution 14% connected an yearly basis, and tablet and notebook request autumn 17%, Corning CEO Wendell Weeks said connected an net call. He added that yearly automotive accumulation is besides down its antecedently expected pace.

"So present the question is, erstwhile volition the solid marketplace recover?" asked Weeks. "My reply is we would similar to spot further affirmative grounds earlier we usher a robust betterment successful solid demand."

Corning's biggest concern is making cables and components for fiber-optic systems, which grew 16% to $1.31 cardinal during the quarter.

But the institution saw a 28% yearly diminution during the 4th to $686 cardinal successful income successful its displays technologies division, which makes solid for smartphones and different machine displays.

And the user electronics slowdown doesn't look to beryllium getting amended this year, Weeks said.

"We present expect smartphones to beryllium down astir 12% for the year, and we expect notebook and tablet request to diminution 15%," Weeks said. "We expect the year-over-year diminution successful smartphones, notebooks and tablets to beryllium greater successful the 2nd fractional than successful the archetypal half."

Corning reported third-quarter income of $3.49 billion, nether FactSet's statement of $3.66 billion, and adjusted net per stock of 51 cents, successful enactment with expectations.