In these
circumstances of weak demand and flat or falling output prices, it is very difficult for businesses to generate increased cash flows.
Kuo notes that the shorter shipping times are a function of improved production and not the
result of weak demand (not that there should have been much fear of iPhone X suffering from weak demand).
Answering to a question on the potential impact
of weak demand for iPhone X during a conference call, a Samsung executive said, «It is hard to give specific details, but we have been trying to diversify our clients and reduce reliance on a certain customer to build a healthy portfolio.
«AAPL is down 10 % from its peak on projections
of weak demand from key suppliers» notes Garnry.
Sales declined by $ 8.47 billion, or 18 %, from 2015 on the
back of weak demand for oil and gas drilling equipment.
Firms directly tied to the energy sector expected further declines in their sales volumes, and companies that sell to energy - related customers suffer along with them as they adjust to an
environment of weak demand.
Such caution is especially warranted given the asymmetric risk scenario recently outlined by Fed governor Lael Brainard (the
risks of weaker demand are greater than those of accelerating price growth).
The International Energy Agency that previously warned of lower for longer oil prices and warned last year that the oil price recovery was threatened by the
possibility of weak demand now has changed its tune and is now saying that it is «mission accomplished» for OPEC as oil stocks shrink at a record pace.
«While annual supply completions remain suppressed relative to previous years, increased supply at a
time of weak demand is expected to continue to push up residential vacancy rates, causing further rental decline by the end of 2016.
Rabobank said that while dairy prices were unlikely to be much improved over the next six months - as the market «strives to turn off the taps of supply growth in the
face of weak demand requirements» - the factors that will trigger a turnaround were now in place.
A targeted VAT cut and a National Insurance Contributions (NICs) holiday must be introduced for small firms as small business confidence fell to -9.3 due to the
pressure of weak demand and rising costs, according to the Federation of Small Businesses (FSB) «Voice of Small Business» Index.
«The
prospect of weaker demand growth and prices at near marginal production costs suggest that most thermal coal growth projects will struggle to earn a positive return for their owners,» Goldman Sachs said in a report.
«After
years of weak demand and unemployment, businesses have clearly underinvested,» Lombardi says, referring to spending on new products, manufacturing facilities and other corporate infrastructure.
Apple and Samsung are major rivals in the smartphone space, so one might expect that the latter would be pleased to
hear of the weak demand for the iPhone X. However, it turns out that Samsung provided the OLED displays for the iPhone X, and Nikkei Asian Review reports that those low sales have sent the South Korean electronics giant looking for new buyers.
«It's so
indicative of weak demand in the office sector that quarterly construction figures are at a historic low and yet vacancies are not really cratering.»
Global dairy prices have fallen around 60 per cent since early 2014, mainly
because of weaker demand from China after it stockpiled milk powder, and most analysts expect milk prices to stay low for some time.
«Management noted that various markets are steadying sequentially after sustained
periods of weak demand, including engine materials to aerospace customers,» he writes.
Even without deflation, very low inflation can be a
sign of weak demand that weighs on wages, corporate profits and growth.
But that rally soon fell away, like many recent price spikes, as robust supply and
expectations of weaker demand from China reminded investors of the market's poor -LSB-...]
For example, in periods of low market volatility and average demand, a one ounce gold American Eagle coin might be offered at 4.5 % over spot, but periods
of weak demand can bring the price down to 3.5 % over spot, or lower.
«It's a fairly weak fundamental picture, one
of weak demand, slight capacity increases, and unpredictable politics,» he said.
As a result
of weaker demand, Apple might stop manufacturing iPhone X when this year's new models go into mass - production in mid-2018.
Apple suppliers are also suffering as a result
of weaker demand.