Apple evaporates 63.9 billion. Why does Apple's market value evaporate
4hw.com.cn: Recently, according to foreign media, because iPhone sales are not as expected and iPhone supply business performance is not as expected, people are worried about Apple stock. The stock price is down. Let's see what's going on.
Apple's share price fell 7.1% in the three trading days ended Monday (22 local time), which wiped out $63.9 billion of its market value. Apple's shares fell on Thursday morning after TSM, the chip maker, released weaker than expected results.
TSMC is the world's largest semiconductor chip manufacturer and Apple's most important chip partner. The company said it expects revenue of $7.8 billion to $7.9 billion in the second quarter, compared with Wall Street's estimate of $8.8 billion. The company blamed its forecast on 'weak demand' in the mobile industry.
Daniel ives, an analyst at GBH insights, wrote in a report to customers: 'as apple enters the much anticipated second quarter of fy18, Wall Street has fallen into & lsquo; full panic mode & rsquo;, as its Asian supply chain shows that iPhone shipments in June were far below expectations. '
According to a senior industry analyst, TSMC's poor performance is expected to be a precursor to the decline of the chip industry and the stock market.
Fred Hickey, editor of high tech strategy, wrote on social media: 'TSMC's warning may pose a threat to the semiconductor (SOx) industry. Sox is the leading indicator of the entire stock market, which has been solid (relatively strong) for the past two years. '
Not long ago, a top wall street company slashed its iPhone sales forecast. The day after TSMC's warning, Morgan Stanley cut its iPhone sales for the June quarter from 40.5 million to 34 million.
Katy Huberty, an analyst at Morgan Stanley, wrote: 'we are cautious about Apple's earnings report due on May 1 because we believe consensus expectations for the June quarter need to be lowered. Apple's return on capital announcement may be equivalent to & lsquo; selling News & rsquo; type events, especially when the expected forecast is substantially lowered. '
Another major apple supplier also slashed its June quarter earnings forecast. AMS Australia, an optical sensor provider that uses the iPhone x, said it expects sales to be between $220 million and $250 million in the second quarter, down nearly 50% from the first quarter.
Moritz Gmeiner, head of investor relations at AMS, said: 'we can't talk about specific customers, but we see a significant decline in the business of large smartphone projects, which has a huge impact on consumer business and the company as a whole. '
Wall Street blamed poor iPhone x demand for the weak performance expectations of the two suppliers. As a result, JPMorgan expects other semiconductor suppliers to report lower than expected results on June 1.
Bill Peterson, an analyst with wireless semiconductors, said in a report to customers: 'TSMC's and AMS's performance expectations for the June quarter further confirmed the trend of slowing demand from apple, with demand for the iPhone x particularly weak. In view of this, we believe that consensus revenue / EPS forecasts for the quarter of June are too high, and we have lowered our expectations for wireless semiconductor companies. '
Mizuho Securities now estimates that demand for high-end new iPhones will fall sharply in the second half of 2018. The company said it expects iPhone production to fall 2% year-on-year in the second half of 2018, while sales of new models such as the iPhone 9 and successor to the iPhone x will fall 15% year-on-year.
Apple did not immediately respond to requests for comment.