The latest Apple supplier to be hit by fears of slowing iPhone demand is US chipmaker Micron Technology. The company’s shares fell 7% in early trading this morning …

Reuters reports that this is just one of the concerns investors have about Micron.

Shares of Micron Technology led falls for U.S. microchip producers on Tuesday, driven by a combination of concerns over slackening iPhone demand and a series of brokerage downgrades that reflect a growing technology stock selloff […]

Micron’s NAND flash memory chips and dynamic random access memory (DRAM) memory chips help power servers and smartphones, including Apple Inc’s latest generation of iPhones.

Although Apple was one factor, falling demand for a range of chips has seen prices slide across the market, with subsequent impacts on share prices.

Weak demand for chips has been hurting the semiconductor stocks. Advanced Micro Devices Inc shares fell 7 percent, while those of Nvidia Corp shed 5.7 percent, taking an additional hit from one of the top cryptocurrency Bitcoin plunging to its lowest in 2018. Both companies get a share of their revenue by selling chips to cryptominers.

“Continued deterioration in both DRAM and NAND pricing leads us to model eight consecutive quarters of gross margin and EPS contraction,” Baird analyst Tristan Gerra, who also lowered his PT to $32 from $75, said in a note.

“NAND outlook continues to worsen, with contract pricing expected to decline mid teens in each of the next two quarters,” Gerra said.

Micron is also the subject of an antitrust investigation in China.

The news is set against a backdrop of general investor nervousness around tech stocks at present, with all the FAANG stocks – which includes Apple – now in bear territory. AAPL stock has fallen more than 20% since October 3.

A number of Apple suppliers have been reporting cuts to orders from a smartphone customer widely believed to be the iPhone maker. It follows a suggestion that the company has slashed orders by as much as 20-25%.

Photo: Shutterstock

Check out 9to5Mac on YouTube for more Apple news:

FTC: We use income earning auto affiliate links. More.

Check out 9to5Mac on YouTube for more Apple news:

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

About the Author

Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!

Ben Lovejoy's favorite gear