AirPods suppler sees lackluster Q1 revenue performance

unitech airpods 2 q1 2020 rect 1

DigiTimes reports that Unitech which suppliers rigid-flex boards for the AirPods 2 saw weaker revenue performance in Q1 of 2020 thanks to lower shipments, the supplier expects the same performance for the next quarter.

Taiwan-based PCB maker Unitech ended the first-quarter 2020 with lackluster revenue performance due to weaker-than-expected shipments of rigid-flex boards for AirPods 2, and its order visibility remains opaque for the second quarter of the year, according to industry sources.

The firm’s March 2020 revenues shrank 34% on year to NT$1.14 billion (US$37.88 million) and first-quarter revenues also contracted 24.8% on year to NT$3.632 billion.

The reports in general states that orders have gone up for notebooks, tablets, and server equipment, but shipments for parts of wireless earphones and headphones have been stagnated.

The sources continued that TWS devices are in a relatively lower pecking order at downstream assemblers, which give production priority to products in urgent demand or to AirPods Pro series with higher gross margins but lower inventory levels. This has blurred second-quarter shipment prospect for Unitech’s rigid-flex boards for AirPods 2, which contributed almost half of the firm’s annual revenues in 2019, the sources added.

Sources from the report says that Apple does not plan to cut orders, despite the lackluster performance.

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