By Sonam Rai
(Reuters) – Shares in Apple Inc
TSMC, the world’s largest contract chipmaker and a major Apple supplier, revised its full-year revenue target to the low end of its earlier forecast.
“Apple represents nearly 20 percent of TSMC’s revenue so the outlook potentially points to weaker-than-anticipated iPhone demand,” Atlantic Equities analyst James Cordwell told Reuters.
Others, some asking not to be quoted, said baldly that the warning was “exactly” about Apple.
Mizuho Securities USA said in a client note that its checks continue to point to soft demand for iPhone X, the Cupertino-based firm’s tenth anniversary phone released last November, in addition to a steady fall in iPhone 8 and 8 Plus orders.
Apple’s shares were last down 2.5 percent and were the biggest drag on the tech-heavy Nasdaq index.
Shares of Apple suppliers including Qualcomm Inc
“Until the new iPhones in the Fall start driving the production food chain in Q3, mobile’s going to be weak,” Elazar Advisors analyst Chaim Siegel said.
TSMC, also a supplier to Qualcomm and Nvidia Corp
Data provider TrendForce had earlier estimated 2018 global smartphone production at around 1.5 billion units, 2.8 percent up on 2017 but down from a previously expected 5 percent.
TSMC on Thursday estimated 8 percent growth for contract chipmakers, compared with its previous forecast of 9-10 percent.
U.S.-listed shares of TSMC
Another big industry bellwether, chip equipment maker Lam Research, said on Wednesday its shipments missed consensus estimates for the first time in five years.
Chipmakers Analog Devices Inc
(Reporting by Sonam Rai in Bengaluru; Editing by Maju Samuel and Patrick Graham)