SAN FRANCISCO (Reuters) – Apple Inc.'s stock fell nearly 2 percent on Tuesday as investors stepped up amid weak demand for iPhones following a warning from a component supplier of smartphones.
South Korean chipmaker SK Hynix Inc said after its quarterly report, it expects smartphone demand to stagnate, a similar warning from Apple's Taiwan Semiconductor Manufacturing Co. Ltd.
The concerns about Apple's quarterly report have slipped Tuesday by 9 percent from its share price over the past five years, erasing $ 80 billion of its stock market value.
"The bar may not be set low enough," said Wedbush senior trader Joel Kulina about Wall Street's declining expectations for iPhone deliveries. "There is still no visibility and that will save a lot of money."
SK Hynix sells memory chips in the smartphone industry as well as companies that manufacture laptops, servers, and other computers.
The European chip manufacturer AMS, which annoyed Apple investors, warned of a downturn due to weak orders one of its main customers. AMS did not mention the customer, but analysts estimate that Apple is responsible for half of Austrian company sales.
GBH analyst Daniel Ives said in a customer announcement on Tuesday that he now expects Apple to ship 212 million iPhones in fiscal year 2018, compared to a previous estimate of $ 221 million.
Apple and investors had been betting that the high-end iPhone X, which was released last November, would revive the iPhone's sales in a global smartphone market that has been saturated in recent years.
"It's not a flop, but it's a slight disappointment compared to previous upgrade cycles," said Canaccord Genuity Analyst Michael Walkley.
Smartphones account for two thirds of Apple's revenue, about three years ago, despite Chief Executive Tim Cook's efforts to expand into markets such as music and smartwatches.
When Apple reports next week, investors will be looking for details on how much of Apple's repatriated debt is being given to investors through dividends and share repurchases.
Apple said in January that it would make tax revenue of about $ 38 billion to reduce profits held abroad by new federal tax laws in the United States, suggesting that it would repatriate about $ 245 billion could.
Analysts expect Apple's March revenue to increase by 15 percent to $ 61 billion, with diluted earnings per share of $ 2.69, according to Thomson Reuters data.
Additional coverage by Stephen Nellis in San Francisco; Arrangement by David Gregorio