Gapping down
In reaction to disappointing earnings/guidance:
- CREE -3.5%, (reaffirms outlook and announces retirement of Executive Vice President and CFO Mike McDevitt), AVGO -2.5%, TSM -1.6%, (May sales), HOME -1.4%, .
Select APPL supply/related names showing weakness:
- STM -1.5%, CRUS -1.4%, SMH -1%, FNSR -0.5%
Other news:
- MVIS -7% (proposes public offering of up to $18 mln of common stock - appointed Sumit Sharma to the newly created position of Chief Operating Officer)
- ADMA -3.8% (commenced an underwritten public offering of its common stock)
- ZS -3.5% (modestly pulling back following today's 23% move higher)
- LITE -2.6% (announces resignation of CFO Aaron Tachibana effective August 31; appoints Chris Coldren interim CFO)
- EXAS -1.6% (commences $150 mln offering of its 1.0% convertible senior notes due 2025)
- AAPL -1.1% (article related to 20% drop in new iPhone part orders)
- VZ -0.7% (outlines CEO succession plan)
Analyst comments:
- CXO -6% (downgraded to Mkt Perform from Outperform at Bernstein)
- DPZ -1.2% (downgraded to Hold from Buy at Maxim Group)
- SIEN -0.5% (downgraded to Hold from Buy at Maxim Group)
Gapping up
In reaction to strong earnings/guidance:
- ZUMZ +14.6%, SFIX +9.3%, DOCU +7.9%, COO +0.7%
Other news:
- VERI +3.3% (entered into $50 mln equity distribution agreement for at-the-market offering with JMP on June 1)
- TRXC +1.2% (filed a FDA 510(k) submission for additional Senhance System instruments including 3 millimeter diameter instruments)
- ALNY +1.1% (new positive results from its Phase 1/2 study with lumasiran)
Analyst comments:
- DXCM +1.9% (upgraded to Overweight from Neutral at JP Morgan)
Early premarket gappersGapping up:
- ZUMZ +17.8%, DOCU +10%, SFIX +9.8%, VERI +3.3%, TRXC +3.2%, CBLK +2.4%, IIVI +1.9%, COO +0.7%, RDC +0.5%
Gapping down:
- MVIS -7%, ADMA -3.8%, CREE -3.5%, AVGO -2.9%, TSM -2.6%, STM -1.7%, EXAS -1.6%, LITE -1.5%, AAPL -1.5%, CRUS -1.4%, HOME -1.4%, SMH -1%, ZS -0.8%, LULU -0.6%
Apple warns suppliers of 20% drop in new iPhone parts orders
Sources say US company prepares two OLED models earlier to avoid repeat of last year's delays
TAIPEI -- Apple has asked its supply chain to prepare around 20% fewer components for iPhones debuting in the latter half of 2018, taking a cautious approach toward smartphone shipments compared with last year's orders, industry sources say.
"Apple is quite conservative in terms of placing new orders for upcoming iPhones this year," one of the four sources, who is in the supply chain, told the Nikkei Asian Review. "For the three new models specifically, the total planned capacity could be up to 20% fewer than last year's orders."
The U.S. company last year placed orders to prepare for production of up to 100 million units of the new iPhone 8, iPhone 8 Plus and iPhone X, but this year Apple currently expects total shipments of only 80 million units for new models, two people said.
Apple did not respond to Nikkei Asian Review's request for comment.
Total iPhone shipments, including new and previous generations, declined 1% on the year in the October-December quarter to 77.31 million, Apple's data showed. The slowdown went beyond Apple, as worldwide smartphone shipments contracted 0.3% to 1.46 billion units in 2017, the first-ever decline in the industry, according to research company IDC.
The Nikkei reported earlier that the U.S. tech titan intends to introduce three new iPhones in 2018. Two will feature the costly organic light-emitting diode screens like the iPhone X, while a cost-effective model keeps the liquid crystal display screen used by the iPhone 8 range. All three models would carry the TrueDepth 3D sensing camera system to activate Face ID similar to the iPhone X model, industry sources say.
Apple's supply chain was told to prepare earlier for the two OLED models, in hopes of avoiding a delay similar to last year's, two industry sources said. The company, celebrating the 10th anniversary of the iPhone launch, introduced the premium iPhone X model last year with a price tag starting at $999. But component shortages as well as production quality issues with the 3D sensing feature kept the iPhone X away from shelves until November, more than one month after it was unveiled, likely harming sales of the gadget.
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Apple suppliers brace for profit slide as gadget sales slow
Foxconn's profit shrinks 14.5% on weak iPhone X sales
"The scheduled time frame for components for the OLED models to go into iPhone assemblers like Foxconn and Pegatron for final assembly falls in July, while the schedule for components for the LCD model would be in August," a supply chain source said. "Two OLED models are likely to be ready roughly one month earlier than the cost-effective LCD model, according to the current plan."
All three new iPhones currently are set to start shipping in September after Apple's annual product launch, despite speculation that the new 6.1-inch LCD model might be delayed due to production quality issues.
"The production yield for the LCD model's 'touch' function is not satisfactory at the moment, but it is improving," one of the supply sources said. "The cost-effective model is viewed as the tool for Apple to boost its total shipment volume this year, and all the suppliers are doing everything they can to make sure the LCD one hits the shelves as soon as possible."
Two sources suggest bottlenecks exist in integrating the 3D sensing module onto the LCD screen for the first time, but that the situation is improving. Last year, only the iPhone X model -- with an OLED screen -- came equipped with the 3D sensing feature, which requires making a notch to fit the module onto the display. For this year, Samsung Electronics would still dominate orders for iPhone OLED screens, while Japan Display Inc. and LG Display split orders for the LCD screens.
Apple suppliers are undergoing the verification process for the new iPhones this month, one source said. Apple also is finalizing the assembly schedule with Foxconn -- known formally as Hon Hai Precision Industry -- Pegatron and Wistron, which will influence the factory recruitment plans of these Taiwanese companies, this individual said.
Foxconn remains the largest iPhone assembler for the upcoming models in 2018. The company will handle all of the 5.8-inch OLED smartphones, while also holding shares of 80% to 90% for the 6.5-inch OLED model and a 30% order allocation for the LCD version, according to Yuanta Securities Investment Consulting's supply chain checks.
Pegatron, a smaller compatriot to Foxconn, looks to secure 60% of the 6.1-inch LCD offering and 10% to 15% of the 6.5-inch OLED model, while Wistron snares the rest of the orders for this year's new iPhones.
Hispasat owners set EUR 1.3bn price tag; sale could be further delayed - report (translated)
08 JUN 2018
Abertis Infraestructuras’ [BME:ABE] new owners Atlantia [MI:ATL] and ACS [BME:ACS] are sounding out the market to sell the satellite unit Hispasat for more than EUR 1.3bn, reported Expansion citing financial sources.
The price is higher than the EUR 1.149bn deal Abertis agreed with Red Electrica de Espana [BME:REE] (REE) and above the EUR 1.254bn valuation set by ACS’s German unit Hochtief [FRA:HOT], the Spanish-language paper noted.
The sudden changes in the Spanish government may delay the sale of Hispasat further, Expansion said citing financial sources. ACS and Atlantia had been sounding out the market and they still intend to sell, according to the report.