Another Apple supplier just cut its outlook
Qorvo, one of Apple's suppliers, slashed its third-quarter guidance, citing "recent demand changes for flagship smartphones."
Lumentum, another Apple supplier, cut its outlook on Monday, citing a reduced shipment request from one of its biggest customers.
Goldman Sachs on Tuesday said they are worried that "end demand for new iPhone models is deteriorating."
Qorvo, which provides Radio Frequency (RF) solutions for Apple, on Tuesday slashed its third-quarter guidance, citing a drop in demand for flagship smartphones.
The company cut its revenue guidance to a range between $800 million and $840 million, down from $880 million to $900 million. Meanwhile, adjusted earnings per share were guided lower, from $1.95 to $1.70.
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The decision comes due to "recent demand changes for flagship smartphones," Qorvo said, adding that its forecast of demand from China-based handset manufacturers remains largely unchanged.
In an annual filing, Qorvo listed Apple as its largest customer, contributing 36% of its revenue in the fiscal year of 2018. Chinese smartphone giant Huawei is also one of its main customers, accounting for 8% of its revenue.
Qorvo is not the only Apple supplier to recently trim its quarterly guidance. Lumentum, one of Apple's facial-recognition suppliers, on Monday slashed its outlook, citing a reduced shipment request from one of its biggest customers. Although Lumentum did not name the firm, investors jumped to the conclusion that Apple was behind the request, speculating that iPhone sales are about to experience a declining trend.
STOCK PRICE FOR AAPL
And on Tuesday, Goldman Sachs became the latest bank to publish a more bearish view on Apple.
"We are concerned that end demand for new iPhone models is deteriorating," Goldman analysts wrote. "We are reducing our iPhone XR/XS Max/XS units estimate, while increasing estimates of lower priced iPhone units."
They trimmed their iPhone unit sales estimate by 6% and dropped their price target from $222 to $209 — 8% above where shares were trading Tuesday.
Apple was up 12% this year.
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