BEIJING, November 8  (TMTPOST)— Goertek Inc, one of leading smart device makers in China, seems to suffer order cuts from one of its key clients.

Source: Visual China

News spread on Tuesday that Goertek lost some of orders from Apple as its qualified AirPods against total outputs is not high. The Shenzhen-based company was also said to face fines for Apple found that it had made false qualified rate. However, people familiar with the industry said the order involved with AirPods Pro was cut not for fabricated qualified rate or fine, but for poor qualified rate, according to The Paper. The Chinese media outlet cited a person from Apple’s supply chain that Goertek did change these short-term orders. The source didn’t know whether Apple would continue partnership on the new project.

In a statement released late Tuesday, Goertek confirmed part of the news as it halted making a smart acoustic device when it received notification from a major overseas client. While not identifying the client and which device the move involved, the statement expected impact of the production adjustment to be no more than RMB3.3 billion out of its overall revenue this year, accounting for 4.2% of last year’s revenue. Goertek noted projects about the client’s other products are still operating normally. It vowed to promote the ongoing impact evaluation of the accident to conclude as soon as possible, and make disclosures in accordance with the laws and regulations.

The product that Goertek stopped production is likely to be AirPods Pro 2, the latest version of Apple earbuds which just released in September, and the reason for halt could result from production issue, rather than that of demand, Ming-Chi Kuo, a well-known analyst covered tech industry, especially Apple, cited his recent investigation later that day.

“To fill the production gap, Luxshare ICT, the first supplier, has expanded production and obtained all orders for AirPods Pro 2, becoming the exclusive assembler of AirPods Pro 2,” said Kuo, the so-called most accurate Apple analyst in the world.

The analyst at TF International Securities was unclear when Goetek will resume production of the earbuds or whether impact of the production halt will extend to the company’s orders from Apple next year, or orders of other Apple products.