Apple (AAPL) Slashing iPhone Supply Chain Orders - Credit Suisse

Apple (NASDAQ: AAPL) is trading lower in pre-open action (-2%) after Credit Suisse noted substantial supply-chain cuts in Asia.

The Credit Suisse Asia Technology Team has noted that iPhone supply chain orders have weakened recently. Apple has lowered its component orders by as much as 10% according to the research.

"In our view, the continued weak supply chain news could weigh on Apple shares for the next few weeks/quarters," analyst Kulbinder Garcha said.

They lower FY16 EPS estimates by 6%, but continue to believe that with high retention rates, continued installed base growth, and the optionality of a smaller 4-inch iPhone, Apple remains an Outperform. The firm maintained its $140 price target.

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For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $120.57 yesterday.

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