TEHRAN, Young Journalists Club (YJC) -Apple Inc (AAPL.O) shares fell to their lowest in more than three months on Monday as three suppliers issued warnings on results that pointed to weakness in iPhone sales.
The Cupertino, California company’s signature product has become pricier with every new launch and analysts say that consumers, especially in emerging markets such as India, are ditching them for cheaper alternatives like those offered by China’s OnePlus.
Apple warned earlier this month that holiday sales would miss Wall Street expectations, blaming the fall on weakness in emerging markets and foreign exchange costs.
Lumentum Holdings Inc (LITE.O), the main supplier of the Face ID technology in the latest generation of iPhones, cut $70 million off its forecasts for revenue on Monday, knocking another 5 percent, or around $50 billion, off Apple’s value in morning trade on Wall Street.
“Many suppliers have lowered numbers because of their unnamed ‘largest customer,’ which is Apple. Apple got cautious in their guidance and it’s hitting their suppliers,” Elazar Capital analyst Chaim Siegel said.
Lumentum blamed the cut in numbers it gave originally just 12 days ago on a client that was “one of our largest... for laser diodes for 3D sensing”, which analysts said could only be Apple.
Screen maker Japan Display Inc (6740.T) cited lower smartphone demand in cutting its own outlook, while British chipmaker IQE Plc (IQE.L) also said it expects a material reduction in its financial performance in the current year.
Shares in Lumentum fell nearly 31 percent, dragging down shares of other suppliers and chipmakers.