as the company got huge orders from Japan Display for the ramp of the new IPhone 5 and the new IPad Mini - these orders have been responsible for the recent jump in revenues and profitability with management promising even more to come. If one of these two products doesn't sell as well as anticipated Japan Display most likely will have to take down the order volumes.
Remember also that following the start-up demand sales of these new products will be lower in the coming quarters which is well evidenced by the recent CRUS guidance for Q1 with revenues down 20% from the peak Q4 quarter.
If the Apple business weakens much faster than projected Nam Tai will have to sign additional sources of revenue to stay on the growth path.
Also remember that there has been a slew of good news recently out of the company but the stock price is stalled around 15 for now. Doesn't look very bullish to me.
Last quarter they did iphone displays for a portion of a single month and made more than 50 cents a share. They did 1.8M - 1.9M iphone LCMs. Now consider that next quarter UBS is predicting that Apple sells 46M iphones (down from a prediction of 52M.) 1/3 of 46M is 15.33M for Japan Display which is more than Nam Tai has even contracted for (a max of 85-90% of 4M per month, or a max of something like 10.5M per quarter) so the reduction is meaningless. It's still way more than Nam Tai will be making.
As for the ipad, it will be a little slow, but it was a little slow last quarter too, and despite that they made a lot of money.
Yes the price is stalled around $15. A month and a half ago it was stalled around $10.50, and 5 months ago it was stalled around $6, and a month before that it was stalled around $5. That's the kind of stall I like.