Overview

• 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.