As concern about slowing iPhone sales continues, Bloomberg today highlights one Apple supplier that has not yet cut its revenue forecasts. That supplier is Skyworks Solutions, who provides radio frequency chips for the iPhone and relies on Apple for half of its revenue.
The first Apple supplier to reduce revenue guidance for the holiday quarter was Lumentum, who supplies Face ID components to Apple. On November 12th, Lumentum said it was asked by an unnamed customer to cut orders by 30 percent. While Lumentum did not disclose who that customer was, Apple is its largest buyer.
Meanwhile, Skyworks Solution reported its fiscal first quarter guidance on November 8th, four days before Lumentum made its announcement of revised guidance. Skyworks could certainly be the next Apple supplier to announce cuts to its fiscal Q1 outlook, but as of now it has not.
Speaking to Bloomberg, Cascend Securities analysts Eric Ross said it’s not certain which day Apple informed suppliers of production cuts, but he estimates it was somewhere around November 6th or 7th.
Cirrus Logic, who suppliers audio chips for the iPhone, announced today that it was cutting its outlook for the holiday quarter. Additionally, a Bloomberg report this morning outlined that Apple reassigned some marketing staff to focus on boosting new iPhone sales.
This comes as Apple is also promoting a ‘$449 iPhone XR’ deal on its US homepage, which is based on the trade-in of the iPhone 7 Plus. The combination of today’s iPhone news and trade concerns sent Apple down some 4.4 percent.
Related stories:
- Apple boosting iPhone trade-in credit with up to an extra $100 when picking up a new XR or XS
- AAPL falls 5% on pessimistic supplier and analyst reports, Dow slides 600 points [U]
- Yet another Apple supplier cuts revenue forecast as iPhone pessimism continues
- Apple reportedly reassigned some marketing staff to focus on boosting new iPhone sales
