Shares of Apple Inc’s Taiwanese suppliers plunged in Taipei trading yesterday after the US consumer electronics giant reported lower-than-expected iPhone and iPad sales for last quarter.
Apple on Tuesday released its earnings results for last quarter, which showed that iPhone shipments reached 47.5 million units, below market forecasts of between 50 million and 53 million units.
The company’s iPad shipments dropped 17.85 percent year-on-year and 13.39 percent quarter-on-quarter to 10.93 million units last quarter, also lower than consensus estimates of 11 million units.
“This might suggest that the Apple supply chain in our coverage universe could have overbuilt inventory heading into the second half of 2015,” Morgan Stanley said in a client note yesterday.
The nation’s two major iPhone and iPad assemblers saw their shares fall on the local bourse, with Hon Hai Precision Industry Co (鴻海) dropping 1.56 percent to NT$94.80 and Pegatron Corp (和碩) retreating 2.96 percent to NT$91.70, underperforming the TAIEX, which slid 0.97 percent.
Compal Electronics Co (仁寶), another iPad assembler, plunged 6.02 percent to NT$21.85.
Apple’s metal casing suppliers were also hit hard, with Catcher Technologies Co (可成) falling 4.77 percent to NT$359 and Foxconn Technology Co (鴻準) plummeting 5.14 percent to NT$101.50.
Camera lens supplier Largan Precision Co (大立光) fared a little better, edging down 0.14 percent to NT$3,545.
Jih Sun Securities Investment Consulting Co (日盛投顧) attributed the lower-than-expected iPhone shipments last quarter to weaker smartphone demand in China.
While Apple said it has not seen any slowdown in its China business in recent weeks, Jih Sun said that China’s increasing smartphone penetration rate could slow down iPhone shipment growth this quarter.
“As we think the specs of the next-generation iPhone will be similar to its current model, investors need to monitor closely whether demand for the next-generation iPhone would be as strong as when the last model was launched,” Jih Sun said in a report issued yesterday.
The slowdown in iPhone sales in the second half of the year is likely affect its Taiwanese assemblers’ performance, the brokerage added.
Fubon Securities Co (富邦證券) analyst Arthur Liao (廖顯毅) said Apple’s iPad shipments would continue to decline this quarter amid softening global tablet demand.
“The next-generation iPad Mini could to be the last model in the iPad Mini product line,” Liao said.
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