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Recent Warnings From Chipmakers Aren't Just About Weaker Demand

Eric Jhonsa

Chip buyers have industry-specific reasons for cutting orders, but also prefer to order cautiously due to greater macro uncertainty and/or greater confidence that they can up their orders in the future without having to worry about supply shortages. having signaled on its Nov. 1 earnings call that it's seeing some weakness in emerging markets such as India, Brazil and Russia and with the company having said it's guiding cautiously partly due to macro concerns, it wouldn't be surprising if Apple is choosing to be conservative with its iPhone chip-order and production plans.