Fears of peak iPhone rattle Asian Apple suppliers

Ivan Schwartz
Ноября 13, 2018

Meanwhile, analysts say that consumers, especially in emerging markets such as India, are ditching them for cheaper alternatives like those offered by China's OnePlus.

Apple's stock fell 5% today, reaching its lowest level in almost four months, after key suppliers cut their forecasts citing reduced orders from a major customer.

Screen maker Japan Display Inc cited lower smartphone demand in cutting its own outlook, while British chipmaker IQE Plc said lower orders from a major customer would reduce its results for this year. One analyst, Longbow Research, conducted spot checks with Taiwanese suppliers late last week and noted a 20-30% drop in orders related to the Cupertino tech giant's newly introduced smartphones, the iPhone XR and XS MAX, and increases in orders for older models. Analyst Mark Kelleher believes that Apple might have had too much Lumentum inventory which it needs to clear off.

Apple said earlier this month it would stop giving the number of iPhones, iPads and Mac computers it sold in a quarter, a closely watched metric and a key indicator of the company's success. Nikkei reported earlier this month that Foxconn had cut as many as 15 production lines for the device.

Among other Apple suppliers, Cirrus Logic Inc. sank 14 per cent, Qorvo Inc. and Broadcom Inc. each slid 6.4 per cent, ON Semiconductor Corp. fell 5.9 per cent, Skyworks Solutions Inc. fell 5 per cent, and Finisar Corp. dropped 4 per cent. Semiconductor stocks were broadly lower with the Philadelphia Semiconductor Index losing 4.4 per cent.

Apple tried to talk up the amount of cash it was making from services although bankers are not that happy with what Jobs' Mob has done about Apple Pay and are making their displeasure known.

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Speculation from news organizations like Reuters are reporting that the company to which Lumentum is referring to is Apple.

Apple didn't immediately respond to a request for comment on the reports. The Street values net income growth much more highly than earnings per share growth, and thus Apple's aggressive share repurchase programme is not necessarily a value creator in the short term.

Asian suppliers also tumbled after the report.

The move led analysts to question the company's business and its share price has since dropped 12.6%.

Tim Cook, chief executive officer of Apple Inc., right, and Jony Ive, chief design officer for Apple.at its product launch last in September.

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