Weekly Review - Apple Inc.

Apple has released financial results and drastically lowered guidance for the coming year as the company predicts that the smartphone market is reaching the point of complete saturation and so smartphone purchases will begin slowing down.

Imagination Technologies makes graphics and video chips for use in Apple Smartphones. The company missed analyst consensus and lowered guidance for the coming year. This led to the company's shares dropping 15% on the London Stock Exchange, which resulted in a 3 year low in trading on Wednesday.

The company said it expects the smartphone makers it partners with, including Apple, to ship between 580 and 630 million units next year, down from previous forecasts of 650 million. We are at a point where most people who want a smartphone already have one. From now on Apple's sales will mainly come from replacement phones, not upgrades.