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Apple's Asia suppliers fall on report iPhone XR production boost canceled


11/06/2018


Apple's Asia suppliers fall on report iPhone XR production boost canceled
Following reports in the media on Monday that Apple Inc is set to stop increasing of production lines dedicated to its new iPhone XR, there was a fall in the stocks of the iPhone maker’s Asian supplier and assembler on Tuesday.
 
While there was a 5 per cent drop in the stocks of Taiwan-based assembler Pegatron Corp, there was a 3.6 drop in share price of its rival Hon Hai Precision Industry Co Ltd or which is better known as Foxconn. It is believed that the biggest customer of Foxconn is Apple.
 
Following the damning report by the Nikkei financial daily on Monday, there was also a fall of 4 per cent in the shares of Apple shares. The Monday report has evoked concerns about the possibility of weak demand for the iPhone XR. This model of Apple was launched by the company in September this year and is the cheapest iPhone that was unveiled by the company in the event. It has been just a few days that the phone has been put up at shelves of Apple stores.
 
According to the news report in the Nikkei, which was based on sources from the iPhone maker’s supply chain, smaller iPhone assembler Wistron Corp was asked to be ready for a sudden increase in orders but the US tech giant did not confirm the supplier any planned orders for iPhone XR for this season.
 
The shares of Wistron fell by 0.8 percent on Tuesday.
 
“Foxconn’s proportion of orders is bigger than Pegatron’s with a ratio of about 6 to 4. Wistron doesn’t have as many orders as the two, so the impact won’t be so big there,” said Nicole Tu, analyst at Yuanta Investment Consulting in Taipei.
 
The shipments for the iPhone XR was started by Apple on October 26, after collecting pre-orders for two weeks. The higher priced iPhone XS and XS Max had been released for sale by the iPhone maker over a month ago.
 
he had very little sales data for the iPhone XR,, Apple’s Chief Executive Tim Cook said on Apple’s post-earnings call last week, and added that a “really great start” was being reported for the other two models that were released simultaneously.
 
The iPhone maker also singled out dropping demand in the emerging market - including India, to be one of the primary factors which forced it to say that the company might miss analyst expectations for sale during the otherwise busy holiday period.
 
The4 market value of the firm has been pushed below $1 trillion in recent months because of demand concerns among investors.
 
There was also sharp drop in the share prices of the other Taiwan-based Apple suppliers on Tuesday.
 
Drops of share value by 6 per cent were noted for the shares of Flexium Interconnect Inc and camera lens-maker Largan Precision Co Ltd. In comparison there was a drop of 0.7 per cent in the Taiwan Weighted Index.
 
(Source:www.ndtv.com)


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