Another Apple Supplier Suffers From Slowing Revenue

Taiwan Semiconductor Manufacturing Co. (TSM) - Get Report , a key supplier to tech giant Apple Inc. , posted weaker-than-expected second quarter earnings Thursday and softer third quarter revenue guidance amid signs that smartphone chip demand could be slowing.

TSMC said net profit for the three months ending in June fell 8.6% from the same period last year to T$66.27 billion, missing the Thomson Reuters estimate of T$68.44 billion. Revenue for the quarter fell 3.6% to T$213.86 billion, the company said, although on a U.S. dollar basis that figure rises 3.2% from the same period last year to just over $7 billion.

"In addition to supply chain inventory management and mobile product seasonality, the continuing unfavorable exchange rate further impacted our second quarter business," said Lora Ho, SVP and Chief Financial Officer of TSMC. "Moving into third quarter, we expect our business will benefit from new product launches of TSMC 10-nanometer mobile devices.

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