Serious dip on Apple Inc (NASDAQ:AAPL) as Cirrus Logic reports excess - CRUS
Northern, WI 04/18/2013 (avauncer) - For the first time, Apple Inc (NASDAQ:AAPL) (Current: $394.55, Down by 2.06%) dipped below $400, since December 2011. This in the wake of the announcement by Cirrus Logic, Inc (NASDAQ:CRUS) (Current: $18.15, Up by 0.53%). The company which is one of the Apple audio-chip suppliers reported a saturation of inventory that indicates that iPhone sales may not meet analyst projections. Cirrus manufactures sound components for the iPad and the iPhone. It is a clear indicator of where these top-selling iPhone products stand in the market. This simply means that Apple had over-projected its sales and is nothing but and overbuild of inventory.
The Apple fall
Cirrus reported its first financial quarter net revenue which was in the range of $170 million and fell below analyst estimates of $197.3 million. This is particularly significant because a large percentage of the company’s revenue comes from Apple. This is a clear-cut indication that the iPhone manufacturer has told Cirrus to expect fewer orders and that Apple is reducing its expectations. There have been no new Apple device debuts since October. There is a possibility that the company will report an 18 percent drop with a net income of $9.5 billion which works out to $10.07 per share in its financial second quarter. This will be the company’s first decline since 2003.
In a statement, the Austin, Texas-based Cirrus said that for its financial fourth quarter, it will be recording a reserve of $23.3 million worth of net inventory. Without naming its client, the company said that $20.7 million of that amount is attributed to a high-volume product from one of its customers. Over 90 percent of the company revenue comes from Apple.