Apple, suppliers tumble as signs mount of weak iPhone demand

Credit Getty Images  Apple

I can't really imagine many prospective iPhone XR buyers being hesitant to pull the trigger because the device lacks a dual-camera and sports slightly larger bezels.

"Although Apple has positioned itself as a super-expensive handset maker providing high-end products, its strategy has not been working in emerging markets including China and India as Chinese vendors have been making iPhone-like products", he said. In its most-recent quarter, Apple reported nearly no increase in the number of iPhones sold, but revenue from that business jumped 29 percent from a year earlier.

Based on Lumentum forecast, analysts have deduced that there is an 18 to 20 million reduction in iPhone orders from Apple.

That's the situation Apple was in Monday. As Reuters reports today, many of Apple's suppliers "have lowered numbers due to their unnamed 'largest customer, ' which is Apple". Now that forecast is being echoed by TF Industries' Ming-Chi Kuo.


Early in the year, the company confirmed it had been intentionally throttling the speeds of some older phones to avoid battery-related problems. Qorvo Inc. slid 7.3 per cent, Skyworks Solutions Inc. fell 2.8 per cent, Finisar Corp. dropped 4.7 per cent and Broadcom Inc. fell 5.3 per cent. Semiconductor stocks were broadly lower with the Philadelphia Semiconductor Index down 3 per cent. Lumentum's outlook comes a week after Nikkei reported that Apple was cancelling a production boost for its iPhone XR line, and less than two weeks after Apple's fourth-quarter results showed tepid unit sales growth. Apple beats consensus estimates for shipments anyway most quarters. Lumentum didn't identify the customer and a spokesman for the company declined to comment, but Apple is its biggest customer, according to data compiled by Bloomberg.

"For Apple, the iPhone shipment has reached its peak". Analysts said that this could only refer to Apple. But when a sale does happen, suppliers get a one-time payment for their component, while Apple can generate hundreds of extra dollars per gadget. "This raises an incremental risk for the rest of the supply chain". But these services are not additional revenue sources for component suppliers. One supplier cutting its outlook doesn't necessarily mean iPhone demand is down.

The report noted that Apple's directive translates to about 100,000 fewer iPhone XRs being made each day.

Related News:



Most liked

Indian reality star Rakhi Sawant hospitalized after wrestling stunt
She on her Instagram, in a long post has said that Tanushree bribed the wrestler to hurt her back so that she can ver dance again. But even in pain, it did not stop her from sharing a video on her Instagram page as she was lying down in bed.

Stan Lee, legendary comic book writer, dies at 95
Spider-Man, Iron Man , the Hulk, X-Men, Black Panther , Daredevil and The Avengers were just some of Marvel's famous creations. Truth be told, whenever someone such as Stan provides dynamite material to Marvel , that forces DC to up its game as well.

Leaders mark end of World War
Macron's concept of a European army would be "positive" for the multipolar world, Vladimir Putin argued on Sunday. Plus, it was with French help that the U.S. defeated the British during the American Revolutionary War.

GRAPHIC: Nets' Cavis Levert Suffers Gruesome Season-Ending Leg Injury
LeVert was in the midst of a breakout season for the Nets , one that sadly appears to have come to an end. Hayward and Paul George provided the path for similar recoveries in the past.

California wildfires: What fires are burning now and where are they?
Professional firefighter organizations said Trump's messages are attacking the thousands of people fighting the devastating fires. Firefighters also appeared to have gained a handle over the Hill Fire, which also erupted Thursday afternoon in Ventura County .

Victoria Beckham: 'I hung up my microphone some time ago'
She told " Extra ", "I have so much going on with my business and my family". "I What you can achieve can really be limitless". She also mentioned those affected by the devastating California wildfires, describing Los Angeles as her "second home".

Florida Counties Race to Recount Several Races by Thursday
This legal wrangling took place as automatic recounts got underway in three statewide races. Ron DeSantis ahead of Democratic Tallahassee Mayor Andrew Gillum by 0.41 percentage points.

Lorde accuses Kanye West of "stealing" stage design
Drake talked about his problems with Kanye West , who produced Pusha T's "Daytona" album, in an episode of "The Shop" on HBO. Lorde put dancers in her floating box, and even hopped in there herself during her 2017 worldwide " Melodrama " tour.

Gunman shoots 11 at California bar
Police on Thursday were searching Long's house in Newbury Park, near Thousand Oaks, where he reportedly lived with his mother. Ms Teylor Whittler managed to escape the carnage unhurt. "He looked like he knew what he was doing, he had practiced".

Putin says had good talks with Trump in Paris: Russian media
After the ceremony, leaders returned to the Elysee for a lunch hosted by Macron, while the spouses lunched at Versailles. He pulled out of a similar ceremony east of Paris on Saturday due to the weather.

Democrat Kyrsten Sinema wins Arizona U.S. Senate seat
McSally's attacks on Sinema reached back more than 15 years, when Sinema was a Green Party spokeswoman and liberal activist. The race dragged into overtime because of its narrow margins and Arizona's traditionally slow pace of counting votes.

Gov. Brown Blames Climate Change for Fires as Trump Blames California
A series of wildfires in Northern California's wine country last fall killed 44 people and destroyed more than 5,000 homes. President Donald Trump to declare a major disaster to bolster the emergency response and help residents recover.

Moon to leave for Singapore to take part in ASEAN summits
Notably absent when regional powers such as China, Japan and India seek to enlist support for a multilateral trading system will be U.S.

Marvel Legend Stan Lee Passes Away at 95
Singer Josh Groban said: "Thank you for making my childhood, teen years and adulthood so fun, especially during darker days". However, his legacy, in the characters that we love and the people that he touched will certainly live on.

Holidaymaker dies of rabies after cat bite
However, they insist that there is no risk of spread in this country of a disease that has never passed from human to human. It said health workers and close contacts of the deceased were being assessed and offered vaccination where necessary.