Apple Slowdown Threatens $30 Billion Global Supplier Web: Tech
The exponentially growing smartphone and tablet maker, Apple may start seeing a decline in sales. Cirrus Logic Inc. a company that produces the audio chips for apple products hinted that Apple products are moving at a much slower pace than anticipated. Since the company is directly linked to Apple to generate a majority of their revenue, a problem in the supply inventory is a sign of how Apple is doing as well. Cirrus Logic Inc. reported their biggest decline in revenue in the past 13 years. The revenue report of Apple’s main supplier of audio chips also had an effect of Apple, lowering their stocks by 5.5% down to $402.80, the lowest since December 2011. A Problem with the supply inventory can also suggest that Apple will not introduce any new products until there is a solution which could pull down their stocks even more.
Apple has been through similar times in the past and Steve Jobs was able to turn the company around. The new CEO, Tim Cook needs to follow Steve Jobs foot steps to continue what the company has become. The recent news has caused analyst to expect a decline in Apple’s financial records which will not look good for the company. Tim Cook needs to start being more innovative if he wants to beat analyst expectations.
Written by: Wilson Tang