Apple down? The threatened a $30 billion global suppliers

Beijing time on April 20, news, foreign media recently published articles, according to apple’s products sales pace is slowing, the trend for the last quarter orders up to $30 billion in total supplier network poses a threat. The article points out that apple’s this landslide trend highlights the investor concern, they worry about around the strong competitors in a market, apple chief executive Tim cook on future product plans if I can succeed.

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apple products sales pace is slowing, the trend of a vast supplier network poses a threat. In a long time in the past, these suppliers network has been in mass production for apple and sell the iPhone smartphone and tablet computer and to benefit from it.

sales by 91% from apple’s audio chip maker Cirrus Logic, for example, the company earlier this week said it faced with the plight of excess inventory, and expects revenue below Wall Street analysts had expected the first quarter, which means that iPhone sales speed may be slow. Hon hai is the biggest supplier of apple’s results were released earlier this month, according to the company’s quarterly revenue decline in the highest form of at least 13 years, means that the sales of smartphones, tablets and personal computers may have declined.

apple’s annual revenue have been from the first released in 2007 on the rapid growth of $24.6 billion to $156.5 billion last year, the astonishing growth of at least consists of 247 global suppliers of an ecosystem provides support. According to data compiled by bloomberg supply chain show that with the support of apple products sales volume rapid growth, these suppliers on a recent earnings season in delivering a $30.1 billion order. And because of this, many suppliers are facing danger, the reason is that it expects this momentum will continue, and hoarding a large number of inventory, lecturer at the university of Texas Michael hassler (Michael Hasler) said.

“for apple suppliers, this was undoubtedly the sorrow of the story.” Hassler said, he served as applied materials supply chain executives of the company. “You (apple suppliers) fate is closely related to apple. Before this is never a bad thing, but recently the situation be changed.”

in the Cirrus Logic, which released the report later, apple shares fell by 8%, in two days time in New York on Thursday hit $395.05, its lowest level since December 2011.

crowded market

this landslide trend highlights the investor concern, they worry about apple chief executive Tim Cook (Tim Cook) on future product plans can succeed in a crowded industry. In this industry, samsung, Google and amazon and other companies have become apple’s powerful competitors. The iPhone is apple’s biggest marketing and profit source, and today the smartphone market has tended to saturation; On the other hand, the mini new products such as the apple into the broader market, but compared with other products of the company, the mini lower margins.

according to By Wednesday so far “Bloomberg Rankings” (Bloomberg Rankings), according to data in the standard & poor’s 100 index constituent companies, 86 companies, chief executive of the office has at least one year; In the 86 chief executive, cook during his tenure performance has been among the top 10 worst performance. Data show that apple relative to the performance of the standard & poor’s 100 index by 13%; By contrast, the worst is the HP CEO Meg Whitman (Meg Whitman), the company’s performance relative to the standard & poor’s 100 index 29% behind.

supply chain

apple may want to this year’s developer conference (usually held in June) will launch new products, and the company’s share price is likely to fall further, unless scheduled for next week’s second fiscal revenue and net income data can reach to the Wall Street analysts expected range of high-end, atlas crown Pacific Securities (Pacific Crest Securities LLC) analyst Andy Hargreaves (Andy Hargreaves) said.

Cirrus spokesman Bill schneier (Bill Schnell) declined to comment, an apple spokesman Steve tao ling (Steve Dowling) did not comment. In Wednesday’s trading, Jabil (Jabil Circuit), Broadcom (Broadcom) and Flextronics (Flextronics International), etc. The company’s share price has dropped, the reason is Cirrus in March said it will be included in the $23.3 million in the fourth quarter earnings of net inventory reserves. Cirrus, according to the inventory reserves are mostly large quantities of products from a customer, but did not specify the customer name.

before cook have warned investors said, should not be on the basis of the isolated report about a supplier, to make a wide range of apple’s overall financial health.

barometer

“even if a particular data point is real, it is impossible to use this data point to make an accurate interpretation of our overall business, because the supply chain is very complicated.” Cook in January of this year, said at a conference call.

apple products sales speed slowdown has led to Cirrus suppliers into a dilemma. As apple revenue growth accelerating, Cirrus sales also achieved rapid growth. Based in Austin, Texas, in 2009, the company achieved sales of $174.6 million. And until a recent fiscal year, its sales have reached $426.8 million.

Cirrus for the iPhone and the production of audio chip, the performance of the company for this two kinds of selling apple products is equivalent to a “barometer”, the investment company Jefferies analyst Peter meters, said Peter Misek (). Because Cirrus most revenue from apple, the relationship between the former troubled means one thing, that is the chip manufacturers have received the notify cut orders from apple, m g said.

A crystal ball

“I can do is to predict customer will give us many orders.” Jason, chief executive of Cirrus rod (Jason Rhode) in January, said at a conference call, when an analyst asked about how the company’s ability to forecast sales. “We tried to make a conservative judgment, so don’t let yourself get too disappointed.” Roeder said. “As for the market can absorb the extent to which the products of our customer this problem, we don’t have ‘crystal ball can make predictions on it.”

in addition to the apple products sales slowed, the cause of Cirrus inventory problems may include apple replacement chip suppliers, or choose to use another new of Cirrus chips, but did not notice in time, hargreaves said. According to the supply chain data compiled by bloomberg show, Cirrus most sales from apple; By contrast, jabil has 13% of its sales from apple, broadcom is 15%, flextronics is 8%.

“when you get on a rapid development of the company’s” free ride “, basically in the end you will become the company’s “imperial” suppliers.” Hassler said.

according to apple, according to results released on January 23, the company’s quarterly earnings growth rate hit its lowest level since 2003. According to data compiled by bloomberg show, then there have been more than 20 analysts downgraded the apple’s target price. Apple’s shares fell on Thursday have set the highest level since January 24, at that time, apple shares fell 12% after the company’s earnings release.

earnings

to march of the second quarter, apple analysts expect its net profit fell 18% to $9.5 billion, it will be the company’s quarterly net profit fell for the first time since 2003. And according to market research firm Sanford c. Bernstein analyst Toni sarkozy nagy (Toni Sacconaghi) forecast, apple in the second quarter may even worse than the expected. He expects second quarter apple iPhone sales to 34.2 million units, lower than previously expected, 35.2 million; He will also be the sales forecast by 1 million, to 18.5 million units.

apple will be in the eastern United States time on April 23, 24 (Beijing time) after the U.S. stocks ended the second quarter earnings release, there are expected to provide guidance for the current quarter.

the apple shares last year hit a record high since the closing on September 19, the s&p 500 index has risen by 6.2%. According to data compiled by bloomberg show, most of the time in the past ten years, apple’s p/e ratio has been higher than the s&p 500 index; And today, apple’s p/e ratio is about 40% less than the s&p 500 index. “If people think that the company’s profit margins and sales are falling, the p/e ratio itself doesn’t make sense.” Owen hargreaves says, he will be apple’s stock rating as a “line with the market” (Sector Perform). “Science and technology in the industry investors have seen such a story before, and the end of the story is not so good.”