Apple Inc. shares took a Monday against a 3 1/2 month low, as a profit and revenue response from an…
Apple Inc. shares took a Monday against a 3 1/2 month low, as a profit and revenue response from an optical equipment provider suggested investors worried that iPhone demand could be weakening became a reality.
stumbled 5.0% in morning trading and put it on track for its lowest closing since July 31st. The stock has now thrown 16.3% since its October 3 record near 232.07 USD.
Meanwhile, Lumentum Holdings Inc. shares shares
dropped 31% against a 21 month low after the company said before Monday that it “recently received a request from one of our largest industrial and consumer customers for laser diode for 3D feeling to significantly reduce broadcasts “in the second quarter, ending December.
As a result, Lumentum adjusted its adjusted earnings per share target area for the quarter to $ 1.15 to $ 1.34 from $ 1.60 to $ 1.75 and its revenue prospects of $ 335 million to $ 355 million from $ 405 million to $ 430 million.
Apple exchanges were down 0.9% in the premarket trade just before Lumentum’s announcement, then fell to a decrease of over 2% shortly after the announcement, before the extension slowed down after the opening.
The reason for the stock’s sudden sale? In August, Lumentum announced in its 10-K annual report with the Securities and Exchange Commission that Apple was its largest customer and accounted for 30% of the total 2018 fiscal revenue ending June 30 after representing less than 10% of revenue in 2017 and 2016.
In its 10-Q quarterly application earlier this month, Lumentum said that “customer A” accounted for 30.5% of its total revenue.
Lumentum noted China-based Huawei Technologies and Ciena Corp.
as its second largest customers, where both companies account for 11% of total revenues. Ciena shares grew 1.9% on Monday.
Wells Fargo analyst Aaron Rakers suggested that Apple was the reason for Lumentum’s reduced prospects. “We believe investors can consider Lumentum’s updated guide that reflects as much as a 30% drop in Apple orders,” Rakers wrote in a note to customers.
Lumentum told MarketWatch that it had “no comment” in addition to what is said in the press release. Apple has not responded to a request for comments.
Worries that iPhone demand slowed has bumped up after Apple’s fourth quarterly report, released after November 1, where the company gave a negative first quarter view and said it would no longer provide device sales data for iPhones.
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Then reports came that Apple had limited plans for additional iPhone XR production lines and chip maker Skyworks Solutions Inc.