Apple suppliers hit by slowdown in iPhone sales

Apple suppliers hit by slowdown in iPhone sales

Apple supplier Cirrus Logic, maker of audio chips, is reporting an inventory glut, providing further evidence of slowing Apple smartphone, tablet and computer sales.

Cirrus Logic, which gets 91% of its sales from Apple, is forecasting fiscal first-quarter revenue below analysts' estimates.

The news follows Hon Hai Precision Industry, Apple's top supplier, posting its biggest revenue decline in at least 13 years this month, indicating slower sales of smartphones, tablets and computers.

Apple supports an ecosystem of at least 247 suppliers globally, receiving $30.1bn in orders from the manufacturer in the latest reported quarter, according to supply-chain data compiled by Bloomberg.

As Apple sales decline many suppliers are vulnerable with many having built sizeable inventories in anticipation of continued growth

Following the Cirrus report, Apple's stock fell 5.5% to $402.80, the lowest level since December 2011.

The decline has raised questions about CEO Tim Cook's performance with rumours on Wall Street that the company is looking to replace him.

Scott Kessler, analyst at S&P IQ estimates that Apple revenues in 2013 will rise about 14%, compared to last year’s 45% increase, with sales of iPhones and iPads driving that gain. He also predicts sales of Mac computers will also decline, cannibalised to some extent by iPad and other tablet sales.

However Kessler predicts that iPhones and iPads ‘will continue to grow at a healthy pace through 2015, despite macroeconomic and competitive threats.’

Apple was unavailable for comment.

Written by Mobile Today
Mobile Today


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