Jabil, which received 19% of its FY13 (ended Aug. '13) sales from Apple and has strong iPhone 5C exposure, is guiding for a 25% Y/Y sales drop in its diversified manufacturing services segment (DMS), which provides iPhone casings.
On its CC (transcript), Jabil stated it saw unexpected "demand changes" from a DMS customer, but insisted the impact will be temporary, and that it will "reallocate assets and resources to different revenue streams for the same customer over the next 2 to 3 quarters."
Citi (Neutral) believes Apple accounts for ~50% of DMS' revenue, and thinks Jabil's guidance is indicative of a major drop in iPhone production. The firm believes its forecast for 38M March quarter iPhone sales is at risk.
Jefferies (Buy) is less concerned, arguing the guidance is "due mainly to a mix shift from the 5C to the 5S." There have already been many reports of production being shifted to the higher-ASP 5S from the 5C.
Yesterday, iPhone/iPad chip supplier Dialog Semi pre-announced strong Q4 sales.