Apple's suppliers expect business to be tough in the second half of 2016
Apple is TSMC's largest customer, accounting for 16% of the firm's $25.93 billion USD in revenue that it rung up last year. That resulted in profits of $9.83 billion USD for the chip manufacturer. But one person who is said to be familiar with TSMC's operations says that revenue growth will be up just 4% this year, and operating profits will be flat all because of the slow down in orders from Apple. TSMC itself has predicted 5% to 10% year-over-year growth in revenue and operating profits for 2016, although most analysts say that growth at that level can not be attained by TSMC this year.
A drop in demand for Apple's next iteration of the iPhone is expected as Apple is rumored to be putting off a major redesign of the handset until 2017. Ming-Chi Kuo, the highly accurate Apple analyst who toils for KGI Securities, says that the next iPhone model will not have many "attractive selling points."
Apple's shares hit a new 52 week low today at $89.47, and are currently trading at $90.07. The most valuable company in the world has seen its valuation drop under $500 billion to $493.7 billion. Right behind Apple is Google parent Alphabet, valued at $488.9 billion.
source: NikkeiAsianReview via SeekingAlpha