Avnet said the weak profit forecast reflects the lower revenue in the technology solutions group, lower profits margins in the Western regions in electronics marketing due to a weaker sales environment, and a greater-than-expected mix shift in electronics market, with better sales in the lower-margin Asia region more offset by weaker sales in higher-margin Western regions.
On the other hand, if Apple comes out with more iPhone form factors in a cheaper version to address the large emerging markets, potential volume increase could offsetmargin decline.