iBankCoin
Joined Nov 11, 2007
31,929 Blog Posts

Apple Faces Significant Supply Shortages

Post Japanese quake, Apple is having a difficult time procuring NAND and DRAM memory chips, as well as glass for its iPad 2.

Toshiba, #2 global supplier of NAND flash, said their factories in Japan would be closed for at least 1 month. Since then, spot prices for both NAND and DRAM have soared.

Because of these difficult headwinds, there is a distinct chance Apple’s margins will be hampered in Q2.

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The NIKKEI Soars

As minor progress or lack of outright disaster in Japan permeates the dog brains of investors, shares in Asia are being bid up fanatically, with the NIKKEI posting a 3% move. Other markets are up, but nothing as exceptional as Japan.

US futures are ripping higher by 1%. And commodities are up across the board.

In other words: risk on.

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