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Smartphone vendors Samsung, Huawei, ZTE, HTC, Nokia, and Research In Motion have slashed...

Smartphone vendors Samsung, Huawei, ZTE, HTC, Nokia, and Research In Motion have slashed component orders by 5%-20% due to "an unexpected slowdown in smartphone sales," believes Jefferies' Peter Misek after conducting supply chain checks. If true, that's a negative for both phone and component vendors. Separately, Raymond James' Tavis McCourt is cutting estimates for Qualcomm (QCOM) on a belief 2Q/3Q phone volumes "could be flattish from 1Q levels." (also)
Comments (5)
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Wow. The news only gets better for Nokia and RIM. There is not enough industry space for all these players. They may have waited too long to merge so now they are dying in the ditch by the road.
    18 Jun 2012, 02:47 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    Consumers are expecting a slew of new devices at the end of the year. Unless a new phone is needed now, I think most will hold off. The reduction of component orders at RIMM should be expected as they wind down older BB7 devices and inventory. Also, RIMM appear to be looking for lower cost partners for manufacturing, since they have cut their partnership with Celestica (CLS) in Canada.
    18 Jun 2012, 04:04 PM Reply Like
  • Jack Jeffries
    , contributor
    Comments (72) | Send Message
     
    I agree, the majority of people are waiting for the BB10 to come out and see what it is all about. Therefore it is expected that sales would be down now. RIM has completed the re-org, and are now focused on getting the BB10 out before year end. It should not be long before they are right back in the thick of things.
    18 Jun 2012, 04:58 PM Reply Like
  • Stealthe
    , contributor
    Comments (69) | Send Message
     
    So if there is slowdown in components for smartphone, what is that in terms of impact to AAPL? If I am reading correctly, this would implies that AAPL # would be lower as well.
    19 Jun 2012, 01:57 AM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    Yes, though that would be exactly in line with the guidance Apple provided during their last earnings. However, I think iPad sales revenues may slightly make up for a decline in iPhone revenues.
    19 Jun 2012, 12:38 PM Reply Like
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