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China tech

China's O-Film apparently cut off from Apple supply chain

US sanctions seen dealing $2bn blow to camera and touch module supplier

China's O-Film said a major customer -- believed to be Apple -- has ended their supply chain relationship.   © Reuters

HONG KONG -- Chinese camera and touch module supplier O-Film Group will lose a substantial purchase order from an unidentified overseas client, the company reported Tuesday evening, a customer believed to be Apple given the size of the order at stake.

The customer recently notified Shenzhen-listed O-Film that its procurement relationship with the group was about to be terminated, the supplier said in a filing on the stock exchange's website. The exact schedule for the cutoff from the supply chain was not revealed, but O-Film said business with this client produced nearly 11.7 billion yuan ($1.8 billion at current rates) in 2019, or 22.51% of total revenue that year.

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