“Shares of European suppliers of microchips, sensors and circuitry to Apple fell on Wednesday after the smartphone company’s much-awaited iPhone sales missed expectations in the second quarter,” Helen Reid reports for Reuters. “Suppliers rely on strong iPhone sales for part of their profits, and in some cases Apple’s announcement on Tuesday reawakened concerns about excessive exposure to Apple.”

“Shares in Dialog Semiconductor, which provides power management systems for Apple, fell 3 percent,” Reid reports. “Swiss company AMS, the maker of optical sensors for iPhones, dropped 2.1 percent and Italy’s STMicro, which provides the phone’s accelerometers, gyroscopes and motion sensors, fell 1.7 percent.”

“Apple said on Tuesday it sold 50.76 million iPhones in the quarter ended April 1, down from 51.19 million a year earlier, indicating that customers may have held back purchases in anticipation of its 10th anniversary edition,” Reid reports. “Analysts on average had estimated iPhone sales of 52.27 million, according to financial data and analytics firm FactSet.”

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MacDailyNews Take: The ocean is being sucked out ahead of the coming iPhone 8 tidal wave.

We’re seeing what we believe to be a pause in purchases of iPhones which we believe are due to the earlier and much more frequent reports about future iPhones. That part is clearly going on and what’s going on behind the data. – Apple CEO Tim Cook, May 2, 2017