Recent reports that Apple planned to cut iPhone production has put the company’s suppliers under pressure this week, and that trend is continuing.
The Nikkei in Japan said earlier in the week that Apple could cut production of the iPhone 6s and 6s Plus by about 30% in the March quarter compared to its original plans.
Last night two US suppliers to Apple issued warnings, with Radio Frequency chip supplier cutting fourth quarter revenues by 14% and audio chip company Cirrus unveiling a 10% decline.
This news has helped push UK chipmaker Arm down 14p to 954p while rival Imagination Technologies has fallen more than 5% to 118.5p and electronics group Laird is 0.1p lower at 325.5p. Liberum analyst Eoin Lambe said:
Cirrus stated that the weakness only came through late in the fourth quarter and will predominately impact the first quarter. [There is a] negative read to Laird (18% of revenue from Apple), Imagination (34% of revenue ) and Arm (around 7% of revenue). Imagination’s balance sheet may start to get tight.
