Apple Inc. (NASDAQ:AAPL)‘s stock was roughed up last week.
The leading consumer tech giant saw its shares tumble 9% on the week, and this is before tomorrow’s quarterly report. The market’s bracing itself for soft results, but a 9% weekly plunge ahead of the actual financials seems more than a bit overblown.
However, if you think Apple had it bad, check out how the market pummeled a few of the companies that have long been viewed as Apple sympathy plays. After all, if Apple’s prospects are diminishing, one would expect that the iOS beneficiaries would also be taking a hit.
Let’s check out a few Apple-related companies that posted double-digit percentage declines this past week.
| Company | April 19 | Weekly Loss |
|---|---|---|
| Cirrus Logic, Inc. (NASDAQ:CRUS) | $17.77 | (17%) |
| Zagg Inc (NASDAQ:ZAGG) | $6.60 | (11%) |
| OmniVision Technologies, Inc. (NASDAQ:OVTI) | $12.39 | (10%) |
Source: Barron’s.
Let’s start with Cirrus Logic.
The audio chip maker crashed after announcing disappointing preliminary quarterly results. The prominent Apple Inc. (NASDAQ:AAPL) supplier is warning the revenue will come in below Wall Street’s expectations, and a problematic inventory reserve suggests that one its customers — possibly Apple — is scaling back on audio chips.
Yes, Cirrus Logic made its own bed. It did have unsettling news leading to its decline. However, ZAGG and OmniVision suffered considerable drops just because they were in the wrong niche at the wrong time.
