No. Their gross margin only fell by 0.2%, and operating expenses only increased by 151 million, neither of which explains more than a small fraction of what hap

No. Their gross margin only fell by 0.2%, and operating expenses only increased by 151 million, neither of which explains more than a small fraction of what happened. The problem is simply that because they are so vertically integrated, they have high fixed costs, and so a relatively small drop in revenue means a huge loss in profit. Another 9% less revenue and they will be making a loss, unless they fire a lot of people.