Apple’s earnings are next week.
As usual, they’re a big deal. The company’s stock has been in a tailspin as investors believe iPhone demand has finally hit a wall. Growth for Apple is expected to slow, or disappear.
If Apple’s earnings are weak, it won’t hurt just Apple. It will effect its suppliers, too.
Bloomberg’s Adam Satariano took at look at some of the companies that would be hurt if Apple’s guidance is tepid next week.
- Cirrus Logic. It makes audio chips for Apple’s iPhones and iPads. It already pre-announced a bad quarter, with bad guidance. It tanked, and it dragged down Apple. It can get worse is Apple has bad news.
- Hon Hai. The parent company of Foxconn, which makes iPhones and iPads. It also makes a lot of other stuff from companies like HP, Microsoft, and Amazon. But, the iPhone has been a big account. If the iPhone slows, then it’s potentially bad for Foxconn.
- Jabil Circuit Inc. It makes components and gets 13% of its revenue from Apple.
- Broadcom. Apple uses Broadcom Wi-Fi and cellular chips. If iPhone sales slow, then Broadcom’s Apple sales slow. Bloomberg says 15% of its revenue is from Apple.
- Flextronics International Ltd. It does design, logistics, and manufacturing. Bloomberg says 8% of its sales come from Apple.