Here's One Major Apple Supplier That Has Yet to Cut Its Forecast

(Bloomberg) -- As lower expectations for sales of Apple Inc.'s iPhone continue to ripple through the supply chain, one heavily exposed supplier has remained mum.

Skyworks Solutions Inc., a radio frequency chipmaker that gets about half of its revenue from Apple, could be the next to cut revenue forecasts after a string of other suppliers have lowered their projections. The company gave its fiscal first quarter forecast on Nov. 8, four days before Lumentum Holdings Inc. sounded the alarm. Yet Lumentum said it was told to reduce shipments from a customer just “a few days” before its announcement on Nov. 12. It didn't mention Apple, but the tech giant is Lumentum's biggest customer.

“We don't know exactly when Apple made the cuts,” said Eric Ross, chief investment strategist at Cascend Securities LLC, in a phone interview. “We suspect it might have been around Nov. 6 or 7. That may not have gotten into Skyworks' forecast.”

Cirrus Logic Inc., a maker of audio chips used in the iPhone, became the latest Apple supplier to cut its outlook on Monday. The news sent its stock down as much as 6.3 percent on Tuesday and weighed on shares of other suppliers.

While Skyworks' forecast fell short of estimates last month, the miss didn't match the reductions from peers. The company cited weakness in China in addition to unit declines in premium smartphones. The midpoint of Skyworks' sales forecast trailed the average analyst estimate by about 6 percent. Qorvo Inc., which gets less revenue from Apple, cut its revenue view on Nov. 13 by 8 percent. 3-D sensor maker Lumentum cut its revenue forecast by 17 percent and Cirrus trimmed its view by 16 percent.

Skyworks will have an opportunity to update shareholders Wednesday in a presentation at the Barclays technology, media and telecommunications conference in San Francisco. Cirrus cut its forecast the day before it was due to present at a conference in London.

Pilar Barrigas, a spokeswoman for Skyworks, didn't respond to messages seeking comment.

Broadcom Inc., which is less dependent on Apple for revenue, hasn't cut its revenue forecast and is scheduled to report earnings on Thursday.

To contact the reporter on this story: Jeran Wittenstein in San Francisco at jwittenstei1@bloomberg.net

To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Jeran Wittenstein

©2018 Bloomberg L.P.