APPLE’S decision to change the connector used in the latest iPhone has been tough on electrical component maker Volex, which was snubbed by Apple for the iPhone 5 after years of making its connectors.
The company revealed yesterday that sales in the six months to the end of September had fallen on last year, and that profits had been cut to a fifth of last year’s.
Apple changed the connector used on its products when it unveiled the latest iPhone last month, choosing a different design after nine years with the old connector. The news had sent Volex’s shares down 30 per cent, such is the company’s reliance on its contract with Apple.
London-listed Volex yesterday reported that turnover fell eight per cent on last year to $249.3m (£154.6m), while pre-tax profit was down 78 per cent to $2.2m. Shares in the Manchester-based firm fell four per cent.
Volex yesterday announced it was embarking on a comprehensive cost-cutting operation in order to maintain its shrinking margins.
“The first half has been tough and lower than anticipated growth with the largest customer in the consumer sector and a challenging economic environment have combined to produce a disappointing set of results,” the company said.