Corning Shares Drop as Q4 Sales Forecast Falls Below Estimates

Corning, the supplier of Gorilla Glass, grapples with slowing demand from the telecom sector despite growth from Apple's new iPhone launch; forecasts fourth-quarter core sales and earnings below market expectations.

Corning Inc., the supplier of Gorilla Glass used by major companies such as Samsung and Apple, saw its shares fall nearly 4% due to its Q4 core sales forecast falling below market expectations.
Despite steady sales from the new iPhone 15 lineup contributing to an 8% increase in revenue from the specialty materials business including Gorilla Glass, Corning has faced rapidly declining demand for its optical fiber cables from the telecom sector.
Corning's optical communications unit, one of its main revenue generators, experienced a significant decline of over 30% in net sales.
The global smartphone market shrunk by 8%, reaching its lowest third-quarter level in a decade, further affecting the demand for Corning's products.
Over the past quarters, to cope with the bleak demand and tough economic conditions, Corning has implemented aggressive cost-cutting measures and hiked prices by around 20%, leading to an improvement in its core gross margin by 90 basis points to 37% in the third quarter.