Tag Archives: nxpi

Apple Stock Dives After iPhone Sales Fall For First Time Ever

Apple ( AAPL ) late Tuesday reported its first-ever year-over-year decline in iPhone sales and its first quarterly revenue drop since 2003. To soften the blow, Apple increased its dividend and share buyback plan. CEO Tim Cook also said business was “healthy” and that Apple has an “amazing” product pipeline. But the stock still fell nearly 8% in after-hours trading following the earnings release. During the regular trading session Tuesday, Apple stock fell 0.7% to 104.35, closing just above its 50-day moving average. Key iPhone chip suppliers Broadcom ( AVGO ), NXP Semiconductors ( NXPI ) and Skyworks Solutions ( SWKS ) also fell after hours. For its fiscal second quarter ended March 26, Apple earned $1.90 a share on sales of $50.6 billion, both missing views. On a year-over-year basis, earnings per share fell 18.5% while sales dropped 13%. Analysts polled by Thomson Reuters expected Apple to earn $2 a share on sales of $51.97 billion in the March quarter. Apple topped estimates for iPhone sales in the quarter, but still saw a sharp drop. It sold 51.19 million iPhones in fiscal Q2, down 16% from a year earlier. Financial analysts on average were looking for Apple to sell about 50 million iPhones during the March quarter. Greater China sales, including Taiwan and Hong Kong, tumbled 26% to $12.49 billion, after soaring 71% in the year-earlier quarter. For the current Q3, Apple is targeting overall revenue of $42 billion, based on the midpoint of guidance, which is well below estimates. It did not give an EPS target. Wall Street was modeling for Apple to earn $1.76 a share, down 5%, on sales of $47.32 billion, also down 5%, in the June quarter. $50 Billion For Shareholders Apple said its board authorized an increase of $50 billion to the company’s program to return capital to shareholders. Under the expanded program, Apple plans to spend a cumulative total of $250 billion of cash by the end of March 2018. As part of the updated program, the share repurchase authorization was raised to $175 billion from the $140 billion level announced last year. Apple also increased its quarterly dividend by 10% to 57 cents a share. Apple has signaled a hiring slowdown by cutting all of its contract recruiters in recent weeks, VentureBeat reported Monday . It also is laying off some full-time recruiters as well, the news website said. In all, more than 100 people were impacted by the moves. Gross Profit Margins Declining Apple’s gross profit margin dipped to 39.4% in Q2 vs. 40.8% a year earlier. Apple expects its gross margin to decline again in the current quarter, to 37.5%-38%. CEO Tim Cook described Q2 as a “challenging quarter.” “Despite the pause in our growth, our results reflect excellent execution by our team in the face of ongoing macroeconomic headwinds in much of the world and difficult year-over-year comparisons,” Cook said on a conference call with analysts. Apple faced currency weakness in most of its international markets. In constant currency, Apple’s revenue declined by 9% year over year, Cook said. Despite the decline in iPhone sales, Apple’s smartphone business remains “healthy and strong,” Cook said. Apple continues to see a high level of people switching from Android smartphones and other platforms, he said. Apple’s iPhone business accounted for 65% of the company’s total revenue in Q2. Apple also saw declines in its iPad and Mac computer businesses. Sales of iPads declined 19% in units and revenue in Q2. Mac sales fell 12% in units and 9% in revenue in the March quarter. Cook hinted at exciting products ahead. Analysts believe Apple is working on an electric car and an Internet TV service, among other things. “The future of Apple is very bright,” Cook said. “Our product pipeline has amazing innovations in store. … We are forging ahead with important investments in research and development, in our infrastructure and our supply chain. We’ve made 15 acquisitions in the last four quarters to accelerate our product and services road map and we’re always on the lookout for companies with great technology, talent and strategic fit.”

HTC Vive Gutted: Micron Chips Stomp Facebook’s Oculus Rift

HTC Vive pummels Facebook ( FB )-owned Oculus Rift in terms of memory, but both tapped Apple ( AAPL ) supplier Texas Instruments ( TXN ) to lead their virtual reality headsets, teardowns from iFixit show . On Tuesday, iFixit unveiled its “Vive-section,” gutting HTC’s VR device to discover four Texas Instruments chips, including a variant on the 16-channel LED driver discovered inside the Rift. But the devices diverge largely on memory. Micron Technology ( MU ) supplies four Vive chips accounting for 72 megabits of flash memory vs. a single Winbond 64-MB chip supplying memory for the Rift. Vive and Rift both employ STMicroelectronics ( STM ) for an ARM-based microcontroller, and the former added in an STM transceiver for speed data transmission. Both also use a Toshiba converter. C-Media supplied an audio controller for the Vive, whereas Oculus tapped Apple supplier Cirrus Logic ( CRUS ) for the Rift audio codec. HTC chose  InvenSense ( INVN ) for its two gyroscope/accelerometer combos, vs. a Bosch Sensortec inertial sensor inside the Rift. HTC also added three NXP Semiconductors ( NXPI ) microcontrollers and a Broadcom ( AVGO ) Bluetooth smart system-on-a-chip. Nordic Semiconductor provided Bluetooth for the Rift. After broadly falling 1.3% Monday on Wall Street, IBD’s 41-company Electronic-Semiconductor Fabless industry group was up nearly 2% in afternoon trading on the stock market today . Micron stock was up more than 9.5%, after rival SK Hynix reported Q1 sales and earnings that fell sequentially and year over year in a tough DRAM (dynamic random-access memory) PC environment. NXP stock was up 4.5% after topping Q1 earnings views late Tuesday and ahead of Apple’s fiscal Q2 report late Tuesday. On Monday, NXP stock fell 1.2% on after an iFixit teardown showed Apple included Intel ( INTC ) and Broadcom inside its Retina MacBook 2016, but not NXP. Shares of fellow Apple suppliers InvenSense, Cirrus Logic and Broadcom were up a respective 4.5%, 2% and 1.5%. STMicroelectronics stock was up nearly 3%, and Texas Instruments stock was up a fraction.

Apple Supplier NXP Semiconductors Earnings Top Ahead Of Apple Report

Apple ( AAPL ) supplier NXP Semiconductors ( NXPI ) late Monday reported first-quarter earnings that fell a little less than estimates, a day before Apple itself is expected to report declining profit and a sharp drop in iPhone sales. NXP Semi gave guidance that was in line to slightly above forecasts. Earnings per share fell nearly 16% to $1.14 a share excluding various items vs. $1.35 a year earlier. Revenue, fueled by acquisitions, climbed about 52% to $2.224 billion from $1.467 billion a year earlier. Economists had expected EPS of $1.09 and sales of $2.21 billion. Comparable revenue fell 11% vs. a year earlier, NXP said, citing “semiconductor industry weakness that accelerated throughout the second half of 2015.” For Q2, NXP Semiconductors sees revenue of $2.295 billion to $2.395 billion, with the midpoint at $2.345 billion. It expects EPS of $1.30-$1.40, with the midpoint at $1.35. Analysts expected EPS of $1.32 and revenue of $2.34 billion. NXP Semiconductors is a leading chip supplier for the Apple iPhone and Samsung smartphones. But it’s also a major supplier of chips for the auto industry, especially after its recent acquisition of Freescale Semiconductor. Auto-related chip sales hit $805 million, up 167% vs. a year earlier on a reported basis, or just 1% with Freescale’s year-earlier results included. But auto-related sales should rise in the “mid- to high-single digit” percentages in Q2, NXP said in its Tuesday morning conference call. NXP is aiming for a long-term gross profit margin of 51%-55 and an operating margin above 30%. In Q1, NXP’s gross profit was 26.8% on a GAAP basis and 50% non-GAAP. Operating profit was -21.2%, or 23.3% non-GAAP. NXP shares jumped 5.3% to 87.75 in morning trade on the stock market today  after rising as high as 89.79. Shares closed down 1.2% to 83.34 on Monday, closing just above the 200-day line, where NXP has been finding support lately. Apple fell 0.5% to 104.51 intraday, after falling below its 50-day line intraday. The stock retreated 0.6% to 105.08 on Monday. Analysts expect Apple earnings to fall 14% to $2 a share and sales 10% to $51.97 billion, with iPhone unit sales down 21%. On Monday, NXP investors reacted to news that its chips are not in the latest Apple Retina MacBook, according to an iFixit teardown , after having several chips in the 2015 model.   Broadcom ( AVGO ) and Texas Instruments ( TXN ) remain big chip suppliers. Texas Instruments reports earnings on Wednesday. Texas Instruments rose 0.5% Tuesday morning while Broadcom climbed 1.4%.