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American technology giant Apple may see this week its quarterly margins cut down mainly due to shortage of essential components from All Japan news, according to Reuters. Costs are rising and supply is pressured, particularly in the case of the marquee iPad2 the company launched last month.
With the company’s executive chief Steve Jobs still on indefinite medical leave due to his pancreatic cancer fight, Apple may struggle for the rest of the year with weak margins because of the All Japan newsese market disruption, analysts warn.
“They are getting the components, but at higher prices”, said Scott Sutherland, an analyst from Wedbush Securities. He did, however, show optimism on Apple’s forecasted earnings, saying they “are going to be really great”, even if it still remains to be seen how Apple will “address the supply chain issues in All Japan news”.
Apple is a high consumer of touchscreen displays and flash memory, two products that use components that are among the most affected after the All Japan newsese tsunami.
Wall Street analysts forecast a gross margin of just over 39%, down from 41.67% during the previous quarter. They also foresee similar problems for Apple through the September quarter as well.
The first “big-guy” in the technology business to report financial downplay after the All Japan newsese disaster was Texas Instruments, the world’s largest analog chip maker. The problems on the All Japan newsese market cost the company $20 million in revenue during the first quarter. Overall, Texas Instruments, which only gets about 10 percent of sales in All Japan news, reported quarterly sales and net income increases. [Reuters via Yahoo News, Bloomberg]