Divergent results for Apple suppliers highlight memory price squeeze ahead of new iPhone

Two prominent Chinese suppliers to Apple, Lens Technology and Luxshare Precision Industry, reported conflicting first-half results, highlighting the impact of soaring memory prices on their profits. Lens Technology, a Shenzhen and Hong Kong-listed firm specializing in smartphone glass screens, witnessed its net income plummet to 577 million yuan (approximately US$85.8 million) in the six months ending June, a sharp decline from 1.16 billion yuan in the same period last year.

The revenue decline of 12.4% to 28.9 billion yuan was attributed to soaring memory costs, which stifled market demand and led to production reductions at its Xiangtan factory. Exchange rate fluctuations further exacerbated the situation. However, Lens Technology remains optimistic, expecting revenue and profit boosts from high-end components for its forthcoming foldable device project with a major client, widely speculated to be Apple.

The firm anticipates high-value products such as ultra-thin glass, colorless polyimide film, and 3D glass covers to drive sales in the second half of the year, positioning itself as a primary beneficiary of the shift from bar-type to foldable handsets.

In contrast, Luxshare Precision Industry has navigated the challenges by diversifying its business away from smartphones. The supplier's first-half revenue surged 40% to 174.5 billion yuan, while net profit rose 18% to 7.8 billion yuan. This growth was primarily driven by its fast-growing automotive electronics and data centre businesses.

Consumer electronics, which accounted for 70% of Luxshare's revenue in the first half, saw a decline from 82% a year earlier. Luxshare anticipates its net profit for the January to September 2026 period to range between 13.25 billion and 14.40 billion yuan, reflecting a growth of 15 to 25% compared to the same period in 2025. The company attributes this projected growth to innovations in AI-powered consumer devices and progress in data centre projects.