1.12 PM Friday, 1 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 05:25 06:38 12:34 15:53 18:24 19:38
01 March 2024

Apple suppliers cut revenue estimates

By Reuters

Apple Inc suppliers Cirrus Logic Inc and Qorvo Inc on Thursday added to growing worries about slowing shipments of iPhone 6S and 6S Plus by cutting their revenue estimates for the third quarter.

Qorvo's shares fell 12.4 per cent in after-market trading, while Cirrus' stock slumped 9.5 per cent before regaining some ground.

The downbeat estimates follow Japanese daily Nikkei's report on Tuesday that output of the latest iPhone models would be cut by about 30 per cent in the January-March time frame so dealers could offload stock.

Qorvo cut its revenue estimate for the December quarter to about $620 million from $720 million-$730 million, blaming weaker-than-expected demand for its radio-frequency chips used in mobile devices.

Analysts on average were expecting $723.7 million, according to Thomson Reuters I/B/E/S.

Cirrus, which gets about three-quarters of its revenue from Apple, cut its revenue estimate to about $347 million from $370 million-$400 million.

Analysts on average were expecting $385.9 million for the third quarter ended December.

Cirrus, which makes audio chips for Apple, said the revenue cut reflected weaker-than-expected demand for certain portable audio products.

Shares of other Apple suppliers, including Skyworks Solutions Inc and Avago Technologies Ltd, were also down. Apple shares were down 0.6 percent at $95.87.

Apple suppliers' shares have taken a beating ever since reports about slowing iPhone 6S and 6S Plus demand surfaced towards the end of 2015.