Apple’s iPhone 5C Weakness May Have Hurt This Supplier
Although Apple’s (NASDAQ:AAPL) declining iPhone 5C sales may have lowered a supplier’s guidance for its upcoming quarter, it doesn’t necessarily mean bad news for the California-based company. Jabil Circuit (NYSE:JBL), a well-known manufacturer of Apple’s iPhone 5C, recently reported disappointing revenue guidance for its upcoming quarter.
“Guidance for the second quarter. We expect revenue on a year-over-year basis to decline approximately 17 percent to be in the range of $3.5 billion to $3.7 billion,” stated Jabil CFO Forbes I. J. Alexander during the company’s recent fiscal first quarter earnings call.
Jabil CEO Mark T. Mondello called the company’s fiscal second quarter revenue guidance “underwhelming and disappointing.” However, he cited several recent events that contributed to the company’s disappointing revenue guidance, including Jabil’s recent “disengagement with BlackBerry (NASDAQ:BBRY).” He also noted “demand changes in a segment of our DMS [Diversified Manufacturing Services] business.”