AMS Posts Impressive 2017 Revenue Thanks to iPhone

Austrian semiconductor company AMS has posted impressive 2017 revenue statistics thanks to growing demand for its chips from phone makers.   

AMS specialises in creating optical sensors that alter the brightness of smartphone screens, also known as ambient light sensors. This technology is useful for a range of applications, including facial recognition. But as Reuters points out, AMS is also developing environmental sensors to track pollution and smartphone-based health monitors. These projects could aid the company’s growth in the coming future.

On Monday, the firm confirmed that it’s to increase its financial forecast for the coming two years and that revenues for 2017 nearly doubled to 1.06 billion euros.

According to Reuters, shares in the company have grown by an estimated 26 percent as a result of the success of Apple’s latest range of iPhones.

It’s also increased its revenue forecast for the 2016-2019 period, expecting to achieve growth rates of 60 percent instead of 40 percent.

That means the company could make as much as 2.2 billion euros. Initially, analysts predicted revenue of 1.8 billion euros, so clearly the company is doing well.

“The substantial upward change, which translates into 2019 expected revenues of more than €2.2bn, is particularly driven by a range of revenue pipeline opportunities in smartphone and consumer applications that are clearly coming into view,” said AMS.

Speaking to Reuters, Vontobel-based analyst Michael Foeth said these numbers will “likely to put investors in good mood and “give a new momentum to the shares”.

This news comes as reports claim that sluggish demand for the iPhone X, which retails for $999, could lead Apple to slash production by up to 50 percent and has revised its targets to 20 million from 40 million units. Just a week ago, it was reported that Apple will discontinue the handset entirely by the end of 2018.

“The U.S. tech giant notified suppliers that it had decided to cut the first-quarter production target to around 20 million units, in light of slower-than-expected sales in the year-end holiday shopping season in key markets such as Europe, the U.S. and China,” said the Nikkei report.

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