Loss of key Apple AirPods account causes GoerTek profits to fall by 50% – 60%

Annual net profit for Apple supplier GoerTek in 2022 could fall by up to 60% compared to last year, according to its stock filling on Dec. 3. The company’s expected net profit for 2022 ranges from RMB 1.7 billion to RMB 2.14 billion ($240 million to $310 million). The firm attributed the adjustment to its inability to retain the audio device production contract for a “major client overseas”, which asked GoerTek to pause production in November. GoerTek’s statement suggests that production under this contract will not resume in 2022 and, as a result, the firm will suffer a revenue loss of around RMB 3.3 billion and a direct loss of RMB 900 million. Ming-Chi Kuo, an analyst notable for sources and data reports related to Apple supply chains, said on Nov. 9 that the unnamed client and the audio devices referenced by GoerTek could be Apple and its AirPods Pro 2. He added that Luxshare Precision had subsequently “obtained all orders” for AirPods Pro 2 and that it was “unclear when GoerTek will resume production of AirPods Pro 2 and whether the impact of this incident will extend to GoerTek’s next-year Apple orders or other Apple product orders.” GoerTek’s stock price has dropped by 23.7% in the past month, according to Google Finance. [GoerTek, in Chinese]