These Optical Company Stocks Sell Off Amid Apple iPhone X Woes
X Shares in Lumentum plunged 7.5% to close at 45.20 on the stock market today. II-VI skidded by 8.6% to close at 48.40. Finisar dropped 2.2% to 20.22.
Apple on Monday was downgraded to neutral by Atlantic Equities, which cited a disappointing iPhone upgrade cycle. Ming-Chi Kuo of KGI Securities on Friday predicted the iPhone X will reach “end of life” in the summer.
Lumentum currently is supplying the lion’s share of 3D sensor devices, called vertical-cavity surface-emitting lasers, to Apple, analysts say. Apple is using 3D sensors for facial recognition to unlock screens in the iPhone X.
Apple in December said it would provide Finisar with $390 million in funding for a new optical device manufacturing plant.
Apple is expected to use 3D sensors for augmented reality apps in the future.