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Tim Cook, chief executive officer of Apple Inc.
Apple’s downgraded revenue guidance dragged its stock down more than 8 percent Friday, and brought its suppliers and partners down with it.
Guidance cuts from some of Apple’s suppliers gave investors the first whiff of bad news regarding the company’s iPhone sales. Apple has been sinking over the past quarter on fears of slowing iPhone sales. Turns out, those fears were justified, as investors learned in Apple’s disclosure Wednesday that it was cutting revenue forecasts to $84 billion from its original projection of $89 billion to $93 billion due in part to weaker upgrades to the new iPhone models.
Apple suppliers sank on Thursday almost as much as Apple itself. Qorvo, a radio frequency chip supplier for Apple, fell about 8 percent Thursday, after it had already cut its own guidance back in November. At the time, Qorvo said the cut was due to “recent demand changes for flagship smartphones,” Reuters reported.
Lumentum, the first Apple suppliers to cut its guidance and warn investors of slow sales, was down around 7 percent Thursday. The company supplies the technology behind Face ID, the facial recognition system installed on the newer iPhone models.
Semiconductor company Skyworks Solutions had also warned investors of lower revenue during its Septmeber-quarter earnings call, causing Citigroup to downgrade it shortly after due to speculation of the weak iPhone sales. On Thursday, Skyworks was down about 8 percent.
Corning, which makes the glass for iPhone screens, was down more than 4 percent Thursday. iPhone chip suppliers also sank, with Broadcom down about 5.5 percent, Micron Technology down nearly 4 percent, and Intel down more than 3 percent. 3M, which makes touch sensor films for Apple screens, was down about 2.5 percent. Qualcomm, which has been in an ongoing legal battle with Apple, was also down about 2 percent.
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