iPhone Suppliers Tumble After Cirrus Logic Adds to Forecast Cuts
(Bloomberg) -- Major suppliers to Apple Inc.’s iPhone fell Tuesday, after Cirrus Logic Inc. joined the ranks of companies that have recently cut their outlooks, a trend that has underlined concerns about demand prospects for one of the most important product lines in the technology sector.
Cirrus sank as much as 6.3 percent before paring declines. The chipmaker cut its revenue outlook for the December quarter due to “recent weaknesses in the smartphone market.” Lumentum Holdings Inc., which cut its outlook last month, fell as much as 5.8 percent. Qorvo Inc., another supplier that recently slashed its forecast, shed as much as 4.1 percent.
Apple dropped 2.4 percent, bringing the the Dow component’s decline to more than 22 percent from a record in early October, a rout that has cost the company its status as the world’s largest by market value. Most of the weakness has come since its fourth-quarter results on Nov. 2, when iPhone unit sales barely grew from a year earlier. Apple also said it would stop providing unit sales for iPhones, iPads, and Macs in fiscal 2019, which analysts said raised the specter of a “sustained” downturn.
Among other suppliers, On Semiconductor Corp. lost as much as 2.4 percent, Diodes Inc. dropped as much as 3.1 percent, IPG Photonics Corp. slid as much as 4.8 percent and Coherent Inc. fell as much as 4.7 percent.
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