Trouble for Apple’s iPhone Business
- Skyworks Solutions warns about softening demand for smartphones
- Skyworks generates 66% of revenue from Apple
- March quarter revenue and profits meet expectations, but mobile phone business sees below normal trends
- Skyworks expects mobile business to be down in June quarter
- Widespread worries about Apple’s iPhone business
In a sign of trouble for Apple’s iPhone business, chip maker Skyworks Solutions has warned investors about softening demand for smartphones. Skyworks, which generates 66% of its revenue from Apple, reported revenue and profits in line with expectations for the March quarter. However, the company saw below normal trends in its mobile phone business, with lower-than-expected end market demand. Skyworks expects its mobile business to be down in the June quarter, below normal seasonal patterns, as excess inventory clears. This warning comes amid widespread worries about Apple’s iPhone business, particularly in the face of increasing competition in China.
Factuality Level: 3
Factuality Justification: The article provides relevant information about Skyworks Solutions warning investors about softening demand for smartphones, particularly from Apple. However, it lacks depth and context, and it includes some speculative language and assumptions about the iPhone business and the smartphone market in China.
Noise Level: 3
Noise Justification: The article provides relevant information about Skyworks Solutions warning investors about softening demand for smartphones, particularly from Apple. It includes details about revenue, profits, and future plans of the company. The article stays on topic and supports its claims with data and examples. However, it lacks in-depth analysis, accountability of powerful people, and actionable insights, which prevents it from scoring higher.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information about softening demand for smartphones, which could impact companies in the smartphone industry such as Apple, Skyworks Solutions, Qorvo, and Qualcomm.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the warning provided by chip maker Skyworks Solutions about softening demand for smartphones, which could have financial implications for companies in the smartphone industry.
Public Companies: Skyworks Solutions (SWKS), Apple (AAPL), Qorvo (QRVO), Qualcomm (QCOM)
Key People: Liam Griffin (CEO), Kris Sennesael (CFO)
Reported publicly:
www.marketwatch.com 
