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iPhone Supplier

iPhone Component Maker Posts Dampened Outlook

By SK 0 comments Last updated June 15, 2016

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Jabil Circuit reported earnings today. Revenue for the period was $4.3 billion, higher than analysts’ projections of $4.2 billion.

iPhone Supplier

“Our electronics manufacturing services business performed ahead of plan supported by near-perfect execution during the quarter,” CEO Mark Mondello said in a statement.

“However as expected, our third quarter results also reflected a soft environment within our mobility business. These challenges will continue to negatively impact our Diversified Manufacturing Services business for the balance of our fiscal year,” Mondello added.

When Jabil reported earnings last on March 16, it reported a big miss for the quarter ending in February. The main reason was reduced demand from Apple for components of iPhones, which represent nearly 25% of Jabil’s total revenue.

JBL said it expected to earn between 15 cents and 35 cents in the fourth quarter, well below the 53 cents analysts were forecasting. It sale estimate, between $4.15 billion and $3.35 billion, is also below the $4.65 billion consensus.

The new earnings numbers from Jabil suggests that the weakness seen in the iPhone segment may still continue through the rest of the year.  It remains to be seen how suppliers such as Jabil Circuit adjust to this new reality of slowing iPhone Sales. Hopefully with new iPhone 7 models planned for next year, it will paint a different earnings story for suppliers like Jabil.

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