Supply Chain Indicators Point to Poor February for Apple

Citigroup's recent claim that Apple would miss its own Q1/Q2 revenue forecasts has been lent weight by Topeka Capital's Apple Monitor reporting that key Apple suppliers had a "terrible" February (via Business Insider).

apple_product_lineup
The monitor, which tracks the results of Apple's key suppliers, is compiled by Topeka Capital's Brian White, an analyst normally bullish on Apple.

When [supplier] results are good, it usually means good things for Apple. When the results are bad, watch out.

White says the February results for his Apple Monitor were down 31 percent sequentially, which compares to the typical 8 percent decline. Even if you factor in the Chinese New Year, he still says it's bad.

The Chinese New Year tends to result in significantly reduced production, but White calculates that factoring that in still results on a fall in production of 15%, amounting to "the worst February we have on record." White goes on to observe that most of the preliminary Taiwan monitors show weak results, suggesting that the slowdown is affecting the whole industry, though Apple's supply chain figures appear worse than most.

Last month, research firm NPD revealed surprisingly strong Mac and iPod sales in the U.S. for the month of January, but with those product families accounting for smaller and smaller proportions of Apple's revenue, iPhone and iPad sales have become the primary drivers of Apple's performance.

Apple CEO Tim Cook has cautioned against reading too much into supply chain reports, noting that the company has multiple sources for many components and that yield rates may vary over time, but Topeka's Apple Monitor attempts to take some of those fluctuations into account by taking a broader view spanning a number of companies within Apple's supply chain.

Top Rated Comments

walie Avatar
101 months ago

Define "recent years" please.


"years" that happened "recently"
Score: 31 Votes (Like | Disagree)
Ceviche Lover Avatar
101 months ago
goodbye apple, hello samsung. this is what happens when you sit on your ass and let competitors catch up to you.
Score: 27 Votes (Like | Disagree)
spiderman0616 Avatar
101 months ago
Wall Street has decided they're done with Apple and are now doing whatever they can to tear it all the way down to the ground. Good reason to just stop listening to them unless you own the stock, which I don't.
Score: 23 Votes (Like | Disagree)
Rogifan Avatar
101 months ago

The Guardian newspaper (UK) had a great article this weekend explaining why Apple are in decline. There stock is down 40% in 6 months and they are not doing anything new or innovative that has the wow factor in recent years. They are not disappearing anytime soon but they are losing brand loyalty as people do want quality but also something new. If you have stock I would be tempted to ditch it! Buy it again when its at its lowest as im sure Apple will bounce back in years to come.


What is all this new and innovative stuff others are doing? And it hasn't been even 2 years since Steve died. What exactly do these people think Apple should have done the last 1.5 years? I suppose they could have released a 5" phone to wow the tech press and Wall Street but not sure what exactly is innovative about a larger screen. One could argue Microsoft was "innovative" with Windows 8 but the customer response seems to be quite muted. So why would Apple add touch screen to the macs when it's not taking off in the PC market? Again, I'd love to know exactly what innovation the Guardian thinks Apple should be doing that its not right now. Or are they just parroting the broader theme in the media echo chamber these days.
Score: 22 Votes (Like | Disagree)
ugahairydawgs Avatar
101 months ago
I still don't understand why anyone, outside of a shareholder, should care about this.

Does your iPhone, iPad, or Mac work well for you? Yes? Then carry on about your day.
Score: 19 Votes (Like | Disagree)
gatearray Avatar
101 months ago

goodbye apple, hello samsung. this is what happens when you sit on your ass and let competitors catch up to you.


I know, right? Apple should get it together, I hear that the GSIII was "designed for humans" which is much more innovative than the previous version which was apparently designed for cats.

:)
Score: 18 Votes (Like | Disagree)

Top Stories

maxresdefault

Italy Fines Apple $12 Million for Misleading iPhone Water Resistance Claims

Monday November 30, 2020 3:10 am PST by
Apple has been slapped with a 10 million euro ($12 million) fine by Italy's antitrust watchdog for unfair commercial practices related to its iPhone marketing in the country. One of the Apple ads cited in the Italian watchdog's proceedings (credit: setteBIT) Specifically, Apple is being charged for misleading claims in promotional messages about how deep and how long iPhones can be submerged...
m1 chip macbook air pro

Developer Delves Into Reasons Why Apple's M1 Chip is So Fast

Monday November 30, 2020 1:57 pm PST by
Apple's M1 chip is the fastest chip that Apple has ever released in a Mac based on single-core CPU benchmark scores, and it beats out many high-end Intel Macs when it comes to multi-core performance. Developer Erik Engheim recently shared a deep dive into the M1 chip, exploring the reasons why Apple's new processor is so much faster than the Intel chips that it replaces. First and foremost,...
General cyber monday 20 sale feature

Apple Cyber Monday 2020: Discounts on iPads, Macs, AirPods, and More [Updated]

Monday November 30, 2020 6:25 am PST by
Today is Cyber Monday, a shopping event that sees many of the same deals from Black Friday bleed over into a new week, along with a few brand new offers on everything from Apple products to related accessories. In this post we'll highlight the best online discounts that you can find on Apple devices today. Note: MacRumors is an affiliate partner with some of these vendors. When you click a...
16 inch MBP Mini Led

Mini-LED M1 MacBook Pro and Mini-LED iPad Pro Models Coming First Half of 2021

Monday November 30, 2020 2:24 am PST by
Apple is widely reported to be embracing mini-LED display backlighting technology for some products next year, and a new report today by DigiTimes has named several of Apple's partners in the supply chain that are expected to benefit from the switch. According to the report, Apple is set to launch its first mini-LED iPad Pro in the first quarter of 2021 and mass produce mini-LED MacBook Pro...
Mac Mini 2018

Apple Developers Now Able to Natively Run macOS Within AWS With Amazon EC2 Mac Instances

Monday November 30, 2020 9:01 pm PST by
As AWS re:Invent kicks off, Amazon Web Services today announced new Mac instances for Amazon Elastic Compute Cloud, allowing AWS customers to run on-demand macOS workloads in the AWS cloud for the first time. Amazon says that the new feature extends the flexibility, scalability, and cost benefits of AWS to all Apple developers as those creating apps for iPhone, iPad, Mac, Apple Watch, Apple...
periscope iPhone feature2

Apple Moving Forward With Plans for 'Folded' Periscope Cameras to Significantly Increase iPhone's Optical Zoom

Monday November 30, 2020 8:01 am PST by
Apple is advancing its plans to significantly enhance the iPhone's optical zoom range using periscope lens technology, according to ETNews. Citing industry sources familiar with the development of iPhone cameras, ETNews report says Apple is currently seeking an appropriate "folded" periscope camera solution for the iPhone and has already initiated discussions with suppliers. Apple has...
apple fitness plus instructor kim ngo

Apple Fitness+ Promotion Ramps Up as Launch Approaches

Sunday November 29, 2020 11:57 am PST by
Promotion for Apple Fitness+ is ramping up, with advertising initiatives and teases from instructors being spotted on social media, indicating that the new subscription service may be launching imminently. MacRumors reader Chris Weaver spotted that Best Buy has started advertising six-month free trials of Apple Fitness+ with Apple Watch purchases. The advert suggests that retailers have...
iphone 12 colors

iPhone 12 Colors: Deciding on The Right Color

Thursday November 5, 2020 8:35 am PST by
The iPhone 12 and iPhone 12 Pro arrived last month in a range of color options, with entirely new hues available on both devices, as well as some popular classics. The 12 and 12 Pro have different color choices, so if you have your heart set on a particular shade, you might not be able to get your preferred model in that color. iPhone 12 mini and iPhone 12 The iPhone 12 mini and iPhone 12 are ...
mac mini macbook pro macbook air m1

Notable Developer Starts Patreon to Fund Apple Silicon Linux Port

Monday November 30, 2020 4:23 pm PST by
Developer Hector Martin, who describes himself as someone who "likes putting Linux on things," has launched a plan create a Linux port for Apple Silicon Macs. Martin, also known as "Marcan," has created a Patreon with the goal of earning enough funding to be able to take on the complexities of bringing Linux to Macs equipped with an M1 chip. Creating a Linux port is no easy task, and Linux...
leather sleeve iphone 12 box

Hands-On With the Leather Sleeve for iPhone 12 Models

Monday November 30, 2020 2:13 pm PST by
Apple this year came out with a handful of accessories for the new iPhone 12 models, and in addition to the standard Silicone and Leather cases, there's also a new Leather Sleeve that recently went on sale. Subscribe to the MacRumors YouTube channel for more videos. We picked up one of the Leather Sleeves to check it out to see if it's worth the $129 that Apple is charging. The Leather Sleeve ...