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Doug Kass: This could be trouble for Apple

Talking Numbers

Is a supplier's woes reason for Apple to worry?

Speaker maker Jabil Circuit Inc. disappointed Wall Street with lower-than-expected earnings and lowered its next quarter guidance. Shares in the electronics company dropped 20% to two-year lows on Wednesday.

(Read more: Ahead of the Bell: Jabil Circuit)

What does that have to do with Apple? Because Jabil provides speakers for the iPhone 5c and part of Jabil's problem is soft demand for that model.

In his latest note to investors, hedge fund manager Doug Kass of Seabreeze Partners, says Apple's stock will take a hit, writing:

"One of the big problems for JBL appears to be soft demand for the iPhone 5c (which JBL provides casings for). Keep in mind that 5c indications have been tepid for months – it has been clear this handset wasn’t selling particularly well pretty much since it was released (myriad press reports have pointed to AAPL trimming production for this product). Meanwhile, sales trends for the 5s have been very strong (JBL doesn’t really have exposure to this product) and reports suggest AAPL has been raising output for this model…. News in the last 12 hours will prob. be disappointing for AAPL shares although iPhone sales overall still seem strong (the 5s will likely more than make up for any 5c shortfall) and China Mobile will prob. happen eventually."

Should Apple be worried for the 5c or be happy that the 5s is selling better-than-expected?

(Watch: Apple's China Mobile iPhone deal delayed)

In the video above, CNBC contributor Andrew Busch, editor and publisher of The Busch Update, discusses what's next for Apple. Looking at the charts on the tech giant is Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson.

Watch the video above to see what Busch and Ross think is next for Apple.

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