Apple Inc’s Asian suppliers dip after Barclays downgrade
Investing.com-- Shares of Apple Inc's (NASDAQ:AAPL) biggest Asian suppliers sank on Wednesday, tracking an overnight decline in the iPhone maker after Barclays downgraded the stock citing cooling demand for its flagship product.
Apple slid nearly 3.6% to a seven-week low on Tuesday after Barclays downgraded the stock to underweight from equal weight, while also trimming the stock’s price target to $160 from $161. Tuesday's losses wiped out about $100 billion of market capitalization from the iPhone maker.
Barclays analysts flagged increased headwinds for Apple’s future device sales, particularly the iPhone. Such a scenario bodes poorly for Asian suppliers, given that a bulk of Apple’s supply chain for its devices is geared heavily towards Asia.
Shares of South Korea’s SK Hynix Inc (KS:000660) and Samsung Electronics Co Ltd (KS:005930)- which supply memory chips and displays to Apple- sank between 2% and 3%. Samsung SDI (KS:006400)- which supplies Apple with batteries- shed 2.9%.
LG Display (KS:034220) and LG Chem Ltd (KS:051915)- which are also suppliers to the iPhone maker- shed 0.3% and 2.5%, respectively, while Posco International Corp (KS:047050) lost 0.8%.
Hon Hai Precision Industry Co Ltd (TW:2317) and TSMC (TW:2330) (NYSE:TSM)- which are key semiconductor suppliers to Apple- lost 0.5% and 2% in Taiwan trade.
In China, AAC Technologies Holdings Inc (HK:2018)- which supplies acoustic components to Apple- fell 3.6%, while BYD (HK:1211) sank 0.4% in Hong Kong trade.
Barclays said that after a lackluster sales performance by the iPhone 15, its successor was likely to follow suit, with the firm unlikely to incorporate any new technologies that could spur a substantial sales boost.
Apple’s sales in China declined for
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