Apple’s revenue expectation shrinks
Being a part of Apple’s (AAPL) supply chain can be a huge benefit to suppliers, but can also pose a liability. Several large Apple supplier stocks fell after Apple lowered its outlook for fiscal 2019’s first quarter. While Apple originally expected ~$93 billion in revenue in the December quarter, it now expects only ~$84 billion because of soft iPhone demand. Apple stock fell 10% on the first full trading day after its outlook cut, as did several Apple suppliers.
Suppliers feel the effect
Apple on track to double services revenue
While weak hardware demand prompted Apple to reduce its revenue outlook, the company’s services business has continued to strengthen. The company expects its services revenue to be $10.8 billion in the December quarter, and it rose 17% year-over-year to $10 billion in the September quarter. Apple generated $24.3 billion in services revenue in 2016 and reports that it is on track to double that by 2020.