KUALA LUMPUR (April 30): Amid subdued demand for smartphones, Globetronics Technology Bhd’s net profit plunged 80% to RM3.09 million for the first quarter ended March 31, 2019 (1QFY19) from RM15.19 million in the previous year’s corresponding quarter, as some customers reduced shipments.

Quarterly revenue for the electronic components maker, who is involved in Apple's supply chain for its iPhones, was down 49% to RM44.05 million from RM86.49 million a year earlier.

In its filing with Bursa Malaysia, the group said its financial performance for the quarter was adversely affected by the continued slowdown in the industry, which had resulted in drastically lower volume loadings.

“In addition, there were unexpected measures taken by certain customers to stop shipments towards the end of March 2019 due to their desire to deplete their inventories in the supply chain,” it said.

Looking ahead, Globetronics expects its performance in the first half of 2019 to reflect the unfavourable conditions in the market and subdued smartphone demand, adding that industry trends in general do not appear to offer additional support to the consumer market.

However, it expects a strong recovery in its overall business and volume loadings in the second half of the year.

“The group will continue to focus on escalating up the value chain and riding on the R&D initiatives in new products design and development with our key customers moving forward,” said the group.

Globetronics shares fell 6 sen or 3.06% to RM1.90, giving it a market capitalisation of RM1.27 billion.