Apple Doubts Deepen: Tech Weekly
NEW YORK (TheStreet) -- This week Apple
Cirrus Logic, which provides chips for Apple's products, also announced that it "will take net inventory reserve of $23.3 million of which approximately $20.7 million is due to a decreased forecast for a high volume product."
For the company's first quarter which ends in June, Cirrus Logic said it expects revenue to be between $150 million and $170 million. Analysts polled by Thomson Reuters are expecting $182.38 million in revenue.
"We feel investors have been waiting for expectations to be reset lower following broadly held concerns over iPhone 5 and iPad 4 demand," Canaccord Genuity analyst Bobby Burleson wrote in a note. The analyst lowered his Cirrus price target to $25 from $30.
"It would not surprise me to see another revenue miss from Apple, given the lower average selling price (ASP) associated with the older iPhones," said TheStreet's Chris Ciaccia.
"Should the ASP come down on iPhones, that could be another reason for the telecoms to think about playing hardball on subsidies," Ciaccia added.
Ciaccia noted that Verizon, AT&T
He notes that it'll be interesting to see what AT&T has to say when it reports earnings next week. The telecom giant reports on the same day as Apple.