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Apple results, guidance hammer Taiwan suppliers

Apple results, guidance hammer Taiwan suppliers

Taipei, July 22 (CNA) Shares of Taiwanese suppliers to Apple Inc. came under pressure Wednesday after the U.S.-based consumer electronics giant reported lower-than-expected sales of iPhones for the quarter ending in June and gave a disappointing outlook for the current quarter, dealers said. The selling also reflected a plunge in Apple shares in the after-hours trading session after Wall Street closed, they said. Apple reported its quarterly results after the U.S. market closed. Shares of Hon Hai Precision Industry Co. (??), an assembler of iPhones and iPads, fell 1.56 percent to close at NT$94.80 (US$3.04), and shares of Pegatron Corp. (??), another iPhone assembler, dipped 2.96 percent to end at NT$91.70. Shares of metal casing maker Catcher Technology Co. (??) shed 4.77 percent to end at NT$359.00, and shares of rival Foxconn Technology Co. (??) dropped 5.14 percent to close at NT$101.50. Recovering from a low of NT$3,370.00, shares of Largan Precision Co. (???), a camera lens supplier to Apple, dropped 0.14 percent to close at NT$3,545.00. The weighted index on the Taiwan Stock Exchange closed down 0.96 percent at 8,918.70 on turnover of NT$77.92 billion. "The dive in Apple shares on Wall Street showed a shock resulting from its results and sales forecast to investors. And such jitters were also felt in Taiwan today," Hua Nan Securities analyst Henry Miao said. Apple said that its net profit for the three months ending in June rose 38 percent from a year earlier to US$10.7 billion and its sales for the quarter grew 33 percent year-on-year to US$49.6 billion. In the quarter, shipments of iPhones totaled 47.5 million units, up 35 percent from a year earlier, but the figure was shy of the 48.80 million units the market had previously forecast. Looking ahead, Apple said that its sales for the current quarter could range between US$49 billion and US$51 billion, lower than an earlier market forecast of US$51.1 billion. After the results and sales guidance came out, shares of Apple fell 6.85 percent in after-hours trading. "The more than 30 percent growth in sales and net profit was not bad. But, investors wanted sexier figures. The worse than expected iPhone shipment data served as the culprit in Apple's heavy losses," Miao said. "The weaker-than-expected sales guidance has raised concerns about the performance in the current quarter," the analyst said. "There have been worries that the next generation of the iPhone will not get a significant upgrade from its predecessor, which could hurt sales and eventually hurt Apple's suppliers." (By Han Ting-ting and Frances Huang)


Updated : 2021-09-26 03:44 GMT+08:00