Shares of Apple Inc (NASDAQ:APPL) sank 4 percent today after a key supplier, Lumentum, said it was forced to reduce shipments to its ‘largest customer’. Apple stock is now trading at levels last seen three months ago in early August, a corresponding drop of roughly $40 billion in market value.
Lumentum (NASDAQ:LITE 37.5 -0.33%) manufactures the specialized lasers that help enable the iPhone X of yesteryear, and this year’s XR and XS, to sense objects in 3D which enables FaceID to work.
The supplier slashes its forecasts by about 70 percent, which sent its own shares tumbling by over 30 percent. JP Morgan even reduced its price target for Apple down to $270, a loss of $4.
We also covered iPhone XR volumes earlier this afternoon after renowned analyst Ming-Chi Kuo downgraded his volume forecast.