Apple reportedly expected to cut iPhone 6S/6S+ orders
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Apple reportedly expected to cut iPhone 6S/6S+ orders
The question is whether this is Apple specific (shift to other handheld devices) or a general pullback in overall phone orders. The former would not really hurt SWKS while the latter would.
Chris
This from The Fly;
TOKYO — Apple is expected to reduce output of the iPhone 6s and 6s Plus by around 30% in the January-March quarter compared with its original plans, a measure that will deal a blow to Japanese and South Korean parts suppliers.
The U.S. company had initially told parts makers to keep production for the quarter at the same level as with the iPhone 6 and 6 Plus a year earlier. But inventories of the two models launched last September have piled up at retailers in markets ranging from China and Japan to Europe and the U.S. amid lackluster sales. Customers saw little improvement in performance over the previous generation, while dollar appreciation led to sharp price hikes in emerging markets.
Output will be scaled back to let dealers go through their current stock. Production is expected to return to normal in the April-June quarter, once inventory adjustment is complete. Apple’s products and brand have not lost their appeal, and older models have continued to sell.
It’s from some Japanese website, dubbed NIKKEI. How original. They’re casting mad aspersions like some WW2 Japanese soldier holed up on some island, still waiting to kill Americans.
I don’t believe it, to be truthful. A 30% reduction would mean Tim Cook would have to become straight again and start dating women. You and I both know that’s never going to happen.
Shares of SWKS, AVGO, CRUS and INVN are getting rocked on this rumor.
http://ibankcoin.com/flyblog/2016/01/05/apple-and-their-stup…
JT
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Hi Saul:
I saw your latest post on your portfolio. how much in SWKS 15-20% do you have? how do you handle such a news?
Skyworks gets a good chunk of its revenue from the iPhone. Aren’t you concerned that you may have too much in SWKS?
How do you deal with this? do you start selling some? or is that keeping you unfazed?
tj
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I am considering the opposite, to buy more as SWKS. I see this news as negative in the short term, but inconsequential for the long hall, and I plan on holding this stock for years. Just so you know, right now I have ~12% of my portfolio in SWKS, and was thinking increasing it to around 15%. Just my sense, but the people here are much more experienced and knowledgeable so I bow to their judgement.
thejusticier: I saw your latest post on your portfolio. how much in SWKS 15-20% do you have? how do you handle such a news?
Skyworks gets a good chunk of its revenue from the iPhone. Aren’t you concerned that you may have too much in SWKS?
Any chartists in the house? To my non-chartist eyes, it looks as if $70 is a key support level; if Skyworks does not hold 70 it looks like a fast, sharp slope down to the upper 40s.
I would be shocked to see the stock reach that level but I’m more than a little surprised to see it here in the low 70s today, approaching its 52-week low.
As a reminder, Skyworks reports earnings January 20 after the market closes (which may impact price action between now and then).
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Lots of theoretically important levels between 73-76. Close under 73 and especially under 70 and I’d get concerned from a technical standpoint, but the fundamentals are so good that unless the business changes for the worse it is almost too cheap to not buy there as well.
For me it’s a buy here and if it breaks 70 I’ll buy more lower but would wait for price to stabilize rather than buy immediately. I think the company is lumped into the AAPL supplier and people don’t care about it as sentiment for AAPL is currently so bad.
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Just to keep things in perspective, the news item is being categorized as a “rumour” given the credibility of its source.
http://www.zacks.com/stock/news/202888/why-is-skyworks-solut…
Wireless semiconductor manufacturer Skyworks Solutions (SWKS - Analyst Report) is one of today’s biggest losers, dropping over 5% as of 2:30 p.m. EST. The negative trading activity today seems to have been brought on by a rumor surrounding Apple (AAPL - Analyst Report), for whom Skyworks is a big supplier.
The rumor, originally reported by Asian business review Nikkei, claims that Apple is expected to reduce output of its latest iPhone models by nearly 30% over the next three months. Apparently iPhone 6s and 6s Plus devices are piling up at retailers around the world, and Apple wants to slow production to adjust for weak sales.
Because of their business relationship, SWSK’s stock performance is often driven by news about Apple. Today we are seeing a reactionary sell-off based on this report. Shares of Apple have also slipped about 2%.
What’s really interesting here is that Skyworks is not even named in the report. Nikkei briefly mentions Apple “parts makers” but does not list any in particular. Also, the article is not sourced and comes from website many have never heard of before.
In short, this rumor could be completely bogus. Regardless, it has had its effect on both Apple and Skyworks. If there is anything the market hates it’s uncertainty, and even a shoddy report from an Asian business website can cause that.
Best,
–Kevin
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