Epicentre

Epicentre: Expects to report a loss for its FY14, mainly attributable to lower sale from certain Apple products as well as erosion of gross margin derived from the sale of third party accessories as a result of increased price competition. The group guides that retail sentiment in the Information Technology and Consumer Electronics segments has generally been soft. We highlight that the latest profit warning from Epicentre, could potentially be viewed as a proxy for other “Apple related players”, as an indication that demand for Apple products could be waning in recent months, which could potentially translate to weaker demand for their related sales and services. Prominent SGX listed counters which counts Apple as a key client would include Hi-P and ECS.