We expected more
Apple suppliers’ shares have taken a hammering after the launch of the iPhone X because European investors are concerned that the phone will not be a success.
While Apple’s shares were not badly effected by the launch, investors are concerned about what it cost its suppliers to stay on the supply list. Apple has been famously leaning on suppliers to reduce their prices to keep its margins wide. That would be ok for the suppliers if the iPhoneX was a success, but Wall Street is not so certain.
The Tame Apple Press claims that shareholders are punishing suppliers for making their phone late. The iPhoneX has been blighted with production problems, however most of these have been due to the yields on the screen and not the other iPhone suppliers.
In fact it was the chipmakers supplying to Apple were among the worst performers, with AMS down 3.2 percent, while Dialog Semiconductor slipped 1.7 percent and STMicro fell 1.1 percent.
Chipmakers have been the best-performing among Europe’s tech stocks this year, accounting for a large chunk of the sector’s outperformance. AMS shares have gained 165 percent in the year to date.
Autore: edfu777 [AT] hotmail [DOT] com (Nick Farrell) Fudzilla.com – Home