>>> Apple’s European Suppliers May Move on Waning Smartphone Sales

AMS SW , ARM LN, DLG GY, IFX GY, IMG LN, STM FP,...

European suppliers of Apple may move today after co.’s streak of 51 consecutive quarters of sales growth ends, 3Q rev. forecast trails lowest est.
  • European suppliers include Dialog Semi, AMS, ARM, Imagination Tech, Infineon, STMicro
    • Dialog most exposed with ~71% of rev. coming from Apple: Bloomberg data
  • Aviate Global says “the end of the Apple super cycle is upon us”
    • Risk to suppliers from negative iPhone growth and shipments, Apple passing through their gross margin pressure on to pricing of suppliers, Apple’s inventory reduction
    • Poor 3Q guidance signals that iPhone 5 SE can’t mask “extremely poor” iPhone 6S demand dynamics
    • Greater China “has gone from hyper growth to falling off a cliff”
    • Remains seller of Apple, Skyworks, Dialog, STMicro, Sony, Murata