Semi's and the consumer market

Yesterday ADI pre-announced negatively. They attribute this to the consumer end market. This is at least the 3rd AAPL supplier to indicate weakness. Add to the drumbeat of analysts’ channel checks which indicate slowing or cancelled orders and something is going on. Whether it is AAPL or others in the segment, there does to be some slowing in the phone market.

Rob

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TSM is an Apple supplier, too, and they reported stellar earnings yesterday and guided well for the year.

If we need to look right now for something, at this very moment, Xiaomi revealed today that they sold 70M devices in 2015. While that amount is 15% higher than the year before, it fell short of the 80 million expected. Xiaomi is the Apple knock off brand in China.

Then we had another research report that showed “non-Android phones” grew 33% in China last year. There aren’t too many other “non-Android phones” outside of Apple.

Suppliers supply to many device manufacturers. And as a whole it is likely the entire market fell short of expectations. But, Apple just might be the one company bucking this trend, just like they did last year for PC shipments. The Mac was the only unit of all the PCs that showed YoY growth.

I would wait for Apple’s earnings report before jumping to too many conclusions.

Best,
–Kevin

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Here is a great article about Apple and where it stands, both in the competitive and macro landscapes. It’s in 2 parts.

Part 1: http://appleinsider.com/articles/16/01/09/apples-competition…

Part 2: http://appleinsider.com/articles/16/01/10/apples-competition…

I personally added to my AAPL position today.

Neil
Long AAPL

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