On Wednesday, Citigroup released a claim that stated Apple is set to miss its revenue forecast for Q1/Q2 this year, and if recent supply chain findings are to be believed, then that’s exactly what will happen. Topeka Capital’s ‘Apple Monitor’ today reported that Apple has had a poor February, with information from the company’s suppliers’ results. Brian White, a Topeka Capital analyst, states these results as being down by 31%.
Business Insider wrote:
“When [supplier] results are good, it usually means good things for Apple. When the results are bad, watch out.
White says the February results for his Apple Monitor were down 31 percent sequentially, which compares to the typical 8 percent decline. Even if you factor in the Chinese New Year, he still says it’s bad.”
Chinese New Year is a problem for many companies with suppliers in China, resulting in decrease in production. However, in Apple’s case, this February was “the worst February we have on record” according to White. This is because, even when the typical production decrease from Chinese New Year is subtracted from the suppliers’ results, production decreased a full 15% below the norm. Some argue that the entire industry is suffering from similar losses, but the results speak for themselves, as Apple’s results are abnormally low.
Take from this what you will, but Apple CEO Tim Cook said himself not to look into these reports too much, as the company uses multiple sources for components, and a change in majority suppliers may not have been accounted for. In other words, we can’t be certain whether or not Apple has experienced a poor February.
Via: Mac Rumors