iPhone component suppliers such as Cirrus Logic (NASDAQ:CRUS) and others such as Qualcomm (NASDAQ:QCOM), Broadcom (NASDAQ:BRCM) and OmniVision Technologies (NASDAQ:OVTI) apprehend that their supplies in the fourth quarter would decline when compared with the third quarter, mainly due to the high base effect. Cirrus (NASDAQ:CRUS), which supplies audio processing chips for the iPhone, is “seeing softness” in some areas of its business, according to latest guidance.
However, sources claim that declines in the fourth quarter shipments were expected due to Apple’s (NASDAQ:AAPL) inventory build-up in the third quarter, and also reduced off takes in respect of the older iPhone models.
However the view from Apple (NASDAQ:AAPL) is different – Apple (NASDAQ:AAPL) CEO Tim Cook expects iPhone sales to hit a record high in Q4 due to massive orders for the new iPhone 4S, launch of the low-priced 8GB iPhone4 and iPhone3Gs models.
CRUS is trading at $14.54, down 19% since October 19th. Shares are down 9% in one year. The stock’s trading range for the year is between $12.39 and $25.48.
Slideshow: Apple Cheat Sheet: iPhone Event Recap>>