Apple Inc. shares and Europe-based suppliers declined after a report that the technology giant has warned its supply chain of a drop of around 20 percent in new iPhone component orders.
Apple fell 2.1 percent in U.S. pre-market trading, after its Frankfurt-listed shares also lost as much as 2.1 percent. Supplier AMS AG dropped as much as 6.7 percent. Other European semiconductor stocks including Dialog Semiconductor Plc, STMicroelectronics NV and Infineon Technologies AG all slipped after the Nikkei said that Apple told its supply chain to prepare about 20 percent fewer components for iPhones debuting in the latter half of this year, compared with 2017’s orders, citing people in the industry it didn’t identify.
Apple’s U.S. shares are up about 14 percent so far this year, while European suppliers have had mixed fortunes. Dialog Semi is down 42 percent in 2018 after Apple, its biggest customer, decided to scale back orders.
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Apple’s sprawling supply chain comprises hundreds of companies and it can be difficult to glean an overall picture of demand from speaking to individual firms. Apple Chief Executive Officer Tim Cook has also warned investors against picking up cues from disparate data points.
— With assistance by Edwin Chan
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