Apple Inc's shares fell almost 6 percent to a one-year low on Wednesday after one of the company's key suppliers, Cirrus Logic ,posted a weak revenue forecast for this quarter, fuelling concerns about weakening demand for iPhones and iPads.
Shares of the gadget maker, among the most widely held among individual investors last year, dipped below $400 Monday before climbing back to $403.23, down 5.5 percent.
Cirrus Logic, which provides Apple with audio processing chips, reported sales, would be less than expected due to unsold inventory. Shares of Cirrus plunged nearly 14 percent on the news.
"We blame Apple for losing its mobility mojo," Vernon Essi, Jr., an analyst at Needham & Co., wrote in a research report today, according to Bloomberg. "This was simply an inventory overbuild for the iPhone 5 relative to Apple's forecast."
Cirrus Logic said it will record a total net inventory reserve of $23.3 million, most of it due to reduced forecast for one product from one customer. The company did not name the customer.
The iPhone maker reports quarterly results next Tuesday. Analysts say Cirrus Logic's dimming outlook lends weight to arguments that consumers' love affair with the iPhone is waning as challengers such as Samsung Electronics vie for their attention.
Apple investors have been waiting Apple to roll out a new product and not just an update of an existing product line in order to reinvigorate demand. Rumors have been swirling for months that the company might be planning a music streaming service, a TV hardware product and even a watch. As of now, none of these products have been released.
