Over the past 24-48 hours Apple has reportedly made large cuts to its orders with iPhone component suppliers leading to another big dip in the company's stock.
Forbes reports that UBS analyst Steve Milunovich has trimmed his estimates and price targets for Apple and Jefferies analyst Peter Misek has cut his gross margin forecast for the December quarter to 39% from 40% and cut his forecast for Q1 shipments.
In a research note, Misek says that iPhone component suppliers “have seen large order cuts” over the last 24-48 hours and that “assembly execution issues are taking longer to resolve than expected.” He also said that component suppliers have had their Q1 iPhone orders cut to 25-30 million from 35-40 million mostly due to component over-build in this quarter.
Misek is predicting 53 million iPhones sold for the December quarter and has dropped his March quarter prediction to 48 million units from 52 million.
Apple was down to close the day at $509.79.