Apple Fallout Hits Europe With AMS, Dialog Semi Dropping
(Bloomberg) -- Apple Inc.’s European suppliers, including Dialog Semiconductor Plc and AMS AG, fell in early Thursday trading after the U.S. technology giant slashed its revenue outlook for the first time in two decades.
STMicroelectronics NV also declined in Paris, mimicking the pressure that earlier sent down shares in Apple’s suppliers in the U.S. and Asia.
“Expect a ton of Apple supplier warnings in coming days,” Neil Campling, analyst at Mirabaud, said in emailed comments. Campling added that this was the case following Apple’s fourth quarter update last November when the tech giant said that iPhone unit sales barely grew from a year earlier.
“This will be brutal!” said Campling.
- The Apple warning, and particularly its concern over the state of the Chinese market, damaged risk appetite among traders globally.
- Apple cut its revenue outlook on fewer than anticipated iPhone upgrades, weakness in the Chinese economy and supply constraints on newer models of its Apple Watch, iPad Pro and AirPod earphones; shares fell as much as 8.5% in extended trading
EU Market Reaction
- AMS fell as much as 21 percent in Zurich, the steepest intraday drop since Nov. 12.
- Dialog Semi fell as much as 10 percent in early trade.
- Infineon, whose Apple exposure is small but has factories and customers in China, fell as much as 4.9 percent in Frankfurt.
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