Morgan Stanley Comments on ARM Holdings Q2 MIss

Following last week's earnings miss by ARM Holdings

, Morgan Stanley analyst, Francois Meunier performed a more in depth analysis of China's smartphone slowdown. Earlier today, Meunier issued a note explaining the implications of his analysis. Meunier says the smartphone slowdown in China explains one-third or $3 million of ARM's revenue shortfall while the other two-thirds or $5-7 million resulted from a decline in feature phones. He further stated that it is unlikely ARM will recover from the decline in feature phones due to Microsoft's

closure of Nokia's feature phone business. amid the note, shares of ARM Holdings were trading down about one percent to $42.73, at last check.