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IPhone Maker Predicts Slowing Gadget Sales Just as Holidays Loom - Bloomberg

Apple Inc.’s main assembly partner Hon Hai Precision Industry Co. projected sales of gadgets like smartphones will drop sequentially this quarter, spurring concerns that chip and component shortages may affect iPhone production before the holiday season.

Sales at the Taiwanese manufacturer’s consumer electronics business, which includes the iPhone, will decline this quarter compared with the previous three months, the company said Thursday. The downbeat projection caught analysts by surprise, given the third quarter is often the peak production season for a global electronics industry that scrambles every year to get devices in front of shoppers before the year ends.

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