Motorola Apple's AIM (Apple, IBM, Motorola) alliance partner and the main manufacturer of Mac processors, saw share values approach a ten year low yesterday – investors are concerned the company may fail to meet sales targets for the current quarter.
Shares lost 17 per cent of value. The fall was attributed to concerns at the continued weakness in the semiconductor and infrastructure markets. Analyst firm Lehman Brothers speculated the company may be impacted by a slower-than-expected recovery in the semiconductor industry.
The company's stock traded as low as $8.08 per share, closing at $8.30 – the value has fallen 45 per cent this year. However, Reuters reports JP Morgan analyst Edward Snyder, saying: "I don't think there are any fundamental issues with the company." The company has been grappling with the industry malaise for 18-months now, cutting forecasts, trimming staff and streamlining its business units.
The malaise continues to be felt across the industry. HP executive vice president Michael Winkler yesterday warned against short term optimism, he said: "I think nobody is counting on a recovery in 2003 now. Lord knows, we'd like to see it happen in the second half of the year, and some think it may happen."
Apple's fortunes have also been hit by the IT slow-down. It's stock closed at $13.599 yesterday, as investors await its fourth quarter and full year results announcement on October 16. The company's share values remained steady, closing at $13.6 on the extended trading market.