Apple shares drop on iPhone suppliers' warnings, Companies & Markets News & Top Stories

Apple shares drop on iPhone suppliers' warnings, Companies & Markets News & Top Stories

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

Apple shares fell 5 per cent on Monday, but Lumentum slumped more than 30 per cent and rival II-VI Inc. dropped 13 per cent. Japan Display dropped 9.5 per cent, while Hon Hai Precision Industry Co. slipped to the lowest level in five years.

On Wednesday, UBS cut its price target on Apple shares to $225 from $240, saying that Apple has likely taking around 6-7 million units out of its initial expectations for a build of around 63 million new iPhone models, split evenly between the XR and XS models.

The slide may also reflect concerns that Apple knows that iPhone unit sales are going to go negative in the short-term, which is why it chose to stop reporting unit sales.

Apple supplier Qorvo Inc QRVO.O cut its third-quarter forecast for profit and revenue on Tuesday, joining a handful of suppliers to the iPhone maker that have warned of an earnings hit due to lower demand from a major customer.

Kuo now expects Apple to ship 70 million iPhone XR units during the holiday quarter, down from his original forecast of 100 million units.

"Suppliers are more dependent on volume than Apple", said Woo Jin Ho, an analyst at Bloomberg Intelligence.

Caris LeVert Won't Require Surgery After Injuring Leg Against Minnesota
The leg bent and LeVert's foot was visibly displaced. "There was really just no words", teammate Joe Harris said after the game. Though the Brooklyn Nets are not always in the national NBA spotlight, Caris LeVert has been enjoying the 2018-19 season.

"We think there is an inventory component that is still negatively affecting the supply chain", UBS said, indicating that Apple may be as many as 10 million units shy of what Wall Street had initially expected.

Apple started selling iPhone XS and XS Max in September and XR model last month.

The share price of Apple has plunged by 5% today as investors worry that the iPhone is not as popular as it used to be.

The analyst in his research note has also said that customers expect dual-cameras and a narrower bezel at this price point. "The Apple investment paradigm is moving away from a focus on device sales toward a more predictable services-driven business".

"A year ago AAPL looked like a table-pounder when iPhone units were weak", Guggenheim wrote in its note on Wednesday.

'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 said the company share price would have to fall to $170 before it would be a good deal.

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