The chip maker said it now expects revenue of $800 million to $840 million for its December quarter, down from its prior forecast of $880 million to $900 million.
IQE's shares closed down almost 29 percent on Monday after its warning. Oclaro Inc., which is being bought by Lumentum, lost 12 percent, its biggest drop since April.
"The legacy iPhone models forecast is likely to increase significantly thanks to more affordable prices; the total iPhone shipments in 1Q19 are likely to see a YoY decline", Kuo continued, citing Career and Nissha Printing as two suppliers that might be affected by Apple's cuts.
"Concerns of JDI's survival are likely to persist", Jefferies analyst Atul Goyal wrote in a note to clients.
"We are concerned that end demand for new iPhone models is deteriorating", the analysts continued.
Lumentum executives told investors at a UBS conference in San Francisco that the customer asked to cut 3-D component shipments just days ago after having requested expedited orders in recent weeks.
The analysts said they are anxious that "end demand for new iPhone models is deteriorating".More news: Rams fear Cooper Kupp has torn ACL
More news: Florida Rep. Charlie Crist backs Nancy Pelosi for House Speaker
More news: Stan Lee dies at 95
Kuo believes consumers could also be waiting for Apple to release a cheaper iPhone XR.
With shares of the Cupertino, Calif. -based tech titan down almost 18% from all-time highs reached in October, some see the recent weakness as a buy opportunity, while others are warning of more pain ahead for the high-flying FAANG player. Japan's Minebea Mitsumi Inc. slid 7.2 percent and Alps Electric Co. dipped 8.9 percent.
Hon Hai Precision Industry Co.'s disappointing earnings will fan fears that Apple Inc.'s legion of global hardware suppliers are in for hard times.
USA chipmakers Cirrus Logic Inc. sank 14 percent, and Qorvo Inc. and Broadcom Inc. each slid 6.4 percent. Today Lumentum announced a bombshell sending it's stock down 28% in early morning trading which dinged APPL by 4% in early trading.
"It's a reversal from a similar report issued in October in which Kuo said he expected the iPhone XR to be a big seller for Apple", CNBC reported on Monday. The company also said it would stop providing unit sales for iPhones, iPads, and Macs in fiscal 2019, a step Nomura Instinet said raised "the specter of a sustained iPhone downturn". JP Morgan is now expecting the iPhone XR to account for 39% of new iPhones sold in the second half of 2018, down from its previous forecast of 47%.
However, the iPhone XR doesn't seem to be doing too well right now.