Apple suppliers cut revenue estimates amid iPhone shipment fears

(Reuters) - Apple Inc (NASDAQ: AAPL) suppliers Cirrus Logic Inc (NASDAQ: CRUS) and Qorvo Inc (NASDAQ: QRVO) on Thursday added to growing worries about slowing shipments of iPhone 6S and 6S Plus by cutting their revenue estimates for the third quarter.

Qorvo's shares fell 12.4 percent in after-market trading, while Cirrus' stock slumped 9.5 percent before regaining some ground.

The downbeat estimates follow Japanese daily Nikkei's report on Tuesday that output of the latest iPhone models would be cut by about 30 percent in the January-March time frame so dealers could offload stock.

Qorvo cut its revenue estimate for the December quarter to about $620 million from $720 million-$730 million, blaming weaker-than-expected demand for its radio-frequency chips used in mobile devices.

Analysts on average were expecting $723.7 million, according to Thomson Reuters I/B/E/S.

Cirrus, which gets about three-quarters of its revenue from Apple, cut its revenue estimate to about $347 million from $370 million-$400 million.

Analysts on average were expecting $385.9 million for the third quarter ended December.

Cirrus, which makes audio chips for Apple, said the revenue cut reflected weaker-than-expected demand for certain portable audio products.

Shares of other Apple suppliers, including Skyworks Solutions Inc (NASDAQ: SWKS) and Avago Technologies Ltd (NASDAQ: AVGO), were also down. Apple shares were down 0.6 percent at $95.87.

Apple suppliers' shares have taken a beating ever since reports about slowing iPhone 6S and 6S Plus demand surfaced towards the end of 2015.

(Reporting by Anya George Tharakan in Bengaluru; Editing by Sriraj Kalluvila)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Apple investigating exposure to Tata Electronics data breach, full analysis underway - Reuters
• How SK Hynix's bet on a niche memory chip made it more valuable than Samsung
• Russian-held Sevastopol without power after Ukraine strikes, Moscow-installed governor says