Apple told its suppliers to slash the numbers of iPhone6Ss by a third because they were sitting gathering dust in fruity cathedrals of worship, or Apple stores as they are known by the faithful. Now the fall out is spreeding to the rest of the industry.

Not to Foxconn, at least not for now, because it just picked up a grant from the Chinese government which is a little worried that it might be forced to lay off all its workers now they have not got anything iPhoney to assemble.

Shares in Apple itself fell 2.5 per cent Arm is 3 per cent , Imagination Technologies and Laird have taken a minor hit. Elsewhere Dialog Semiconductor is down 4.2 per cent and ASML has fallen 2.5 per cent.

Beancounters at Liberum have warned that  Apple had initially told suppliers to keep production flat with last year’s levels and this cut would be negative for a number of companies in the semiconductor sector.

@In Europe Imagination, Laird, ASML and ARM have significant exposure to Apple and its supply chain. Imagination derives about 34 per cent  of its revenues from Apple, ARM close to 10 per cent and Laird about 20 per cent. ASML gets about 25 per cent -30 per cent  of its revenues from foundries which are mainly spending on capex to cater to Apple’s demand. DRAM (50% of ASML’s revenue) is also partially Apple dependant. We remain cautious on all these stocks and see the risks being to the downside," Liberum warned

A lot of companies which smuggly fiddled while other companies suffered from the downturn of hte smartphone industry believing they were safe because of their Apple contract are expected take a signficant hit.  Many of them were expanding because they believed, against all evidence that Apple would continue to sell the iPhone when no one was actually buying them. The fact it managed it a bit longer was more of a triumph of marketing and now it looks like the Apple bubble is about to burst.