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BlueFin: Some Apple Supply Chain Reduction Rumors Might Have Been Due To This

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BlueFin Research said some of the Apple Inc. (NASDAQ: AAPL) supply chain reduction rumors may have been due to "small adjustments" for a few component suppliers in the iPhone supply chain to account for the CMOS image sensor delays.

Analyst Paul Peterson noted that the April 14 and 16 earthquakes in the Kumamoto prefecture of Japan have analysts "scrambling" to assess the impact to Sony Corp (ADR) (NYSE: SNE)'s image sensor business as they control about 40 percent of the market.

Related Link: There's No Evidence iPhone Orders Have Been Cut: JPMorgan

According to a note from Peterson, Nagasaki Technology Center, the main facility for Sony's image sensors for smartphones, was not "significantly impacted" and the company restarted the equipment on April 17th after the second earthquake.

However, the analyst warned there could be supply chain delays for digital cameras, security cameras, and micro-displays as operations at Sony's Kumamoto Technology Center in Kikuchi Gun were suspended and remains closed one week later. This facility makes image sensors for these devices.

"The minor production hiccup and potential scrap of WIP could result in modest supply chain delays," Peterson wrote in a note.

Shares of Apple fell 0.6 percent to $106.44 and ADRs of Sony declined 3.47 percent to $26.96.

Latest Ratings for AAPL

DateFirmActionFromTo
Jan 2020MaintainsNeutral
Jan 2020MaintainsOverweight
Jan 2020MaintainsBuy

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Posted-In: Bluefin iPhone Paul PetersonAnalyst Color Analyst Ratings Tech

 

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