Apple’s Asia suppliers' stocks fall
Apple Inc's Asian supplier and assembler stocks fell yesterday on a report that the iPhone maker had told its smartphone assemblers to halt plans for additional production lines dedicated to its new iPhone XR.
Taiwan-based assembler Pegatron Corp fell 5 per cent and rival Hon Hai Precision Industry Co Ltd (Foxconn) dropped 3.6 per cent. Apple is considered the biggest customer for Foxconn.
Apple shares fell nearly 4 per cent on Monday after the report by the Nikkei financial daily, which fuelled concerns that the iPhone XR - the cheapest of three iPhones unveiled in September - was facing weak demand.
The Nikkei, citing supply chain sources, said Apple had also asked smaller iPhone assembler Wistron Corp to stand by for rush orders, but the firm would receive no planned orders for the iPhone XR this season.
Wistron shares were down 0.8 per cent on Tuesday.
Apple began shipping the iPhone XR on Oct 26 after two weeks of pre-orders. The company had released the higher priced iPhone XS and XS Max more than a month earlier.
On Apple's post-earnings call last week, chief executive Tim Cook said he had very little sales data for the iPhone XR, but the other two models had got off to a "really great start." - REUTERS