So, Apple's suppliers have begun to seek new clients, expand resources and lower the proportion of smartphone revenues in their total revenues.
Lens Technology said it will speed up technology innovation and R&D investment in wearable devices, intelligent homes and driverless cars this year.
It is also making efforts in the biometric identification technology, which could enhance the recognition rate of fingerprints and be applied in customs, and entrance and exit facilities for high-speed trains.
"As sales tend to peak in the July-September quarter, the company will see a rebound. We expect a 10 percent increase in both revenue and net profit this year," Zhou said.
The company is also aiming to offer glass covers to US electric-car maker Tesla Motors Inc.
Like Lens Technology, Shenzhen-based Desay Corporation, Apple's battery supplier, saw its January-March revenue fall (17 percent to 1.5 billion yuan) and profit plunge (34.3 percent to 38.9 million yuan).
Desay provides more than half of the battery products for Apple's iPhones. Based on its 2015 annual earnings report, orders from Apple accounted for nearly 70 percent of its total revenue.
In order to reverse the situation, the company's subsidiaries established a joint venture last year in Huizhou, Guangdong province, to produce lithium batteries for electric cars.
An unidentified senior manager of Desay told the National Business Daily that the company has decided to reduce dependence on big customers, and is expanding its business to domestic smartphone makers, such as Xiaomi Corp, Oppo Electronics Corp and Vivo Mobile Communication Technology Co Ltd.
It also made it to the supplier list of Huawei Technologies Co Ltd by the end of last year, but has not yet started supplying its products to the Chinese tech major. It plans to tap into the PC market this year.
Xiang Ligang, a telecom analyst, said Apple ought not to squeeze the prices of its major suppliers. For, if it cuts their prices, the latter may be forced to cut corners in turn, which would eventually affect the quality of Apple's products.
Xiang said whether or not suppliers' forays into automobile fields prove successful remains to be seen.
Zhu Dalin, an analyst at Beijing-based internet consultancy Analysys International, said: "The decline in Apple's revenue will undoubtedly have an impact on its suppliers, which have to seek new business growth points, developing intelligent hardware, such as VR (virtual reality) and AR (augmented reality) and cooperating with other smartphone makers."
However, the decline in suppliers' profits is temporary, Zhu said. "We could expect recovery in their profits after the release of Apple's iPhone 7 later this year."
