By Vibhuti Sharma
(Reuters) - Lumentum Holdings Inc, which supplies parts for Apple Inc's latest iPhones, said a large unnamed customer had cut orders, forcing it to lower its sales and profit forecasts less than two weeks after releasing the numbers.
Shares in the Milpitas, California-based manufacturer fell 27 percent, while those of Apple dropped 4 percent. Shares of several Apple suppliers were also hit.
Lumentum is one of the primary suppliers of technology that powers Face ID feature of iPhones, with Apple accounting for 30 percent of the company's revenue as of June 30.
"Many suppliers have lowered numbers because of their unnamed 'largest customer,' which is Apple. Apple got cautious in their guidance and it's hitting their suppliers," Elazar Capital analyst Chaim Siegel said.
Huawei Technologies Co Ltd and Ciena Corp are Lumentum's two other major customers, with each contributing 11 percent to its revenue.
Lumentum Chief Executive Officer Alan Lowe said in a statement one of the company's largest customers for 3D sensing requested to reduce orders that were originally scheduled for delivery during the quarter.
Lumentum declined to give further details when contacted by Reuters.
Japan's Nikkei reported earlier this month that Apple had told its smartphone assemblers Foxconn and Pegatron to halt plans for additional production lines dedicated to its new iPhone XR.
Lumentum now expects net revenue of $335 million to $355 million, compared with its prior range of $405 million to $430 million, and earnings per share of $1.15 to $1.34, down from $1.60 to $1.75 estimated previously.
Another Apple supplier, screen maker Japan Display Inc on Monday also lowered its outlook for the full year, citing weaker demand from smartphone makers.
Apple warned earlier this month that sales for the crucial holiday quarter would likely miss Wall Street expectations, which CEO Tim Cook blamed on weakness in emerging markets and foreign exchange costs.
Longbow research analysts said spot checks with Apple's Taiwanese suppliers late last week highlighted 20 percent to 30 percent iPhone order cuts related mainly to iPhone XR and XS Max, and 20 percent to 25 percent order increases for older iPhone models.
Apple started selling iPhone XS and XS Max in September and XR model last month. Lumentum's chips are not used in phones older than last year's iPhone X.
Shares of Oclaro Inc, which Lumentum said in March it would buy for about $1.7 billion, were down 10 percent.
(Reporting by Vibhuti Sharma and Shanti S Nair in Bengaluru; Editing by Anil D'Silva)
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