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Bad omen for Apple as supplier misses guidance

Apple customers queue up in the rain outside Apple's flagship store in Beijing.
Peter Parks | AFP | Getty Images
Apple customers queue up in the rain outside Apple's flagship store in Beijing.

A day after a Morgan Stanley analyst cut her iPhone units estimate by 12 percent due to negative supply chain checks, a key Apple supplier pre-announced a negative sales warning Tuesday morning.

Dialog Semiconductor, a power-management chip vendor, traded down over 5 percent in Europe as the the company now expects fourth quarter revenue to be in the range of $390 million to $400 million compared with previous guidance of $430 million to $460 million. It blamed weaker-than-expected demand in its mobile systems segment for the miss.

Here's why this is bad news for Apple...


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