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Largan, AAC shares downgraded on weaker iPhone demand

Largan, AAC shares downgraded on weaker iPhone demand

Taipei, Nov. 10 (CNA) Shares of two leading component suppliers to Apple Inc. were downgraded by a European brokerage on Tuesday because of weaker-than-expected demand for iPhones. In a note to clients, the European brokerage downgraded shares of Taiwanese smartphone camera lens maker Largan Precision Co. (???) and Hong Kong-listed acoustic component maker AAC Technologies Holdings Inc. from "outperform" to "neutral" following a recent cut in iPhone component orders. The brokerage firm, whose name cannot be reported under Taiwan's regulations, now expects shipments of iPhone components to decline by "single-digits" year-on-year in the current quarter and to drop approximately 20 percent year-on-year in the first quarter of next year. "We believe the softer-than-expected demand might be due to currency volatility, the lack of attractive apps to support the new force touch function (which has been the key selling point of the iPhone 6s), and macro uncertainties," the brokerage said. It added that Largan and AAC are more sensitive to the changes in iPhone shipments as well as the iPhone product portfolio, given their higher market shares in the flagship product's supply chain. Largan shares had gained 0.38 percent as of 11:32 a.m. Tuesday in Taipei trading, while AAC shares had lost 2.21 percent in Hong Kong. (By Jeffrey Wu)


Updated : 2021-09-22 04:15 GMT+08:00