Things That Make You Go… Huh?

According to Forbes Magazine, Morgan Stanley analyst Mark Edelstone lowered 2006 and 2007 earnings-per-share estimates on LSI Logic after the chipmaker posted weak results in its consumer business due primarily to a decline in demand for Apple Computer’s iPod. The article goes on to say:

While the company saw strength in storage components business, those gains were offset by softness in its consumer business, which declined almost 24% sequentially due largely to seasonal decline in demand for Apple’s iPod digital audio player, for which LSI supplies certain components.

Umm, what would a seasonal decline have to do with full-year 2006 and 2007 estimates?

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