Apple Suppliers and Ecosphere Players Get Hit on Earnings

January 23, 2013 by Jon C. Ogg

By now you know the news that is driving Apple Inc. (NASDAQ: AAPL) lower and lower, but the earnings report and lower margins have an interesting side-effect here even if Apple is still growing. The margin pressures that Apple is facing and the notion that 61% of its sales are international sales now will likely create a scenario that is bad for the stocks that supply Apple and the companies in the ecosphere as Apple is likely to become even more predatory and intrusive on pricing. That means that suppliers of Apple’s competitors are likely to face pressure from end-user and OEM clients as well even if the companies do not supply components for Apple directly.

ARM Holdings PLC (NASDAQ: ARMH) is seeing its shares drop 2.6% to $39.10 against a 52-week range of $21.64 to $42.55.

Broadcom Corp. (NASDAQ: BRCM) is down over 2.4% at $33.90 against a 52-week range of $28.60 to $39.66.

Cirrus Logic Inc. (NASDAQ: CRUS) rose 3% to $29.95 today but its stock in the after hours session is down over 7% at $27.65 against a 52-week range of $19.73 to $45.49.

Jabil Circuit Inc. (NYSE: JBL) is down over 1% at $19.55 against a 52-week range of $16.82 to $27.40.

Micron Technology Inc. (NASDAQ: MU) now owns Elpida and it is down 0.9% at $7.68 versus a 52-week range of $5.16 to $9.16.

Nuance Communications, Inc. (NASDAQ: NUAN) is down only 1% at $23.15 against a 52-week range of $19.33 to $31.15.

OmniVision Technologies, Inc. (NASDAQ: OVTI) is down over 2% at $14.80 against a 52-week range of $11.82 to $21.12.

QUALCOMM Incorporated (NASDAQ: QCOM) is down over 2% at $63.65 against a 52-week range of $53.09 to $68.87.

SanDisk Corp. (NASDAQ: SNDK) was up after beating earnings but now shares are down 2.4% at $46.51 against a 52-week range of $30.99 to $52.64.

Skyworks Solutions Inc. (NASDAQ: SWKS) rose 5.2% to $21.83 on the day and shares are giving back the gains. Its stock is down 5.9% at $20.37 against a 52-week range of $19.21 to $31.44.

TriQuint Semiconductor, Inc. (NASDAQ: TQNT) is down 1.7% at $5.10 against a 52-week range of $4.30 to $7.26.

Even the key tech ETF of the PowerShares QQQ (NASDAQ: QQQ) is down 1.5% at $67.59 as Apple overly dominates this ETF.

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