Shares of Apple Inc. AAPL are up less than one percent this afternoon, but the stock could be headed for a greater rebound if its key suppliers report strong results.
The first supplier, Cirrus Logic, Inc. CRUS, impressed both analysts and investors. The firm is currently up more than 18 percent.
"They are hugely dependant on Apple," Apple expert Sean Udall told Benzinga. "I think they do anywhere from 80 to 85 percent of their business with Apple. Everybody talks about Apple, 'Was the guide bad?' I thought the guide was pretty good. I've covered the FX and channel inventory reduction, which definitely crimped the revenue production that Apple produced."
Udall said that if investors take the guide for what it is -- and if they "want to be a little nervous about it" -- they could consider some weakness in China. But he disagrees with that line of thinking.
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