On Thursday shares of Apple fell -4.22 percent and closed down another -.87 percent in afterhours to 95.61 largely due to concerns about the company’s exposure to China and uncertainty about weather China’s weakening economy will impact consumer demand for its products alongside recent signs of weaker demand for Apple’s iPhones.
On Tuesday the Wall Street Journal reported that in recent months Apple cut order forecasts to iPhone suppliers and cited people familiar with the matter.
Evidence of a slowdown was detected after the closing bell on Thursday with two Apple suppliers, Cirrus Logic and Qorvo, both warning that their quarterly December results would fall short and not meet previous guidance expectations.
Cirrus derives nearly three quarters of its revenues from Apple and warned on Thursday that their revenue is projected to fall by $39 million to $347 million from an earlier forecast of $386 million.
Qorvo, another important Apple supplier, warned that their quarterly revenues would fall by $100 million and come in approximately at $620 million compared to an earlier guidance of $720-730 million.
Qorvo also cited weaker demand in their Mobile Products segment.
On Thursday RBC Capital Markets analyst Amit Daryanani lowered his forecast for iPhone sales by 10 million units with his forecast dropping to 45 million units from 54 million in the current quarter that ends in March.