JBL - Apple's Coronavirus Warning Could Hurt These 4 Suppliers
Apple (NASDAQ: AAPL) recently warned that it wouldn't meet its second-quarter revenue guidance (for 9%-16% growth) due to the novel coronavirus outbreak in China. It stated that its worldwide iPhone supply would be "temporarily constrained" by manufacturing issues in China and that its store closures and reduced operating hours for open locations would throttle its sales to Chinese consumers.
That warning wasn't surprising since Apple previously announced the closures and its top contract manufacturer Foxconn only brought back about 10% of its workforce after the extended Chinese New Year holiday. Apple's stock dipped after the announcement but subsequently rebounded as investors digested the news.
Many Apple investors likely consider the coronavirus (officially known as COVID-19) outbreak to be a temporary headwind. That's likely true, but that headwind could hurt Apple's smaller suppliers more than the tech giant. Today, we'll discuss the outbreak's potential impact on four of Apple's top suppliers: Jabil (NYSE: JBL), Skyworks Solutions (NASDAQ: SWKS), Qorvo (NASDAQ: QRVO), and Cirrus Logic (NASDAQ: CRUS).