|Heh bad bad, even worse than expected. We discussed on here the need to do more business with Apple. Appreciate some didn't want the lower margin business, well this alternative is pretty bad, if not worse.|
Sanjay still being vague in terms of what they are doing going forward. Sure, he cant name names, but reading between the lines seems like they will be supplying Apple after all with those lower margin products.
Something we never discussed margin wise is white label business, do wonder if that business was any better than supplying Apple. Seems not as they are junking it again. Hopefully that will alleviate some of the supply demand imbalance. Also, more non-captive instead of Fab5 expansion should help the balance, but reduce gross margins.