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Apple's Asia suppliers fall on report iPhone XR production boost cancelled

Reuters 

(Reuters) - Apple Inc's Asian supplier and assembler stocks fell on Tuesday on a media report that the maker had told its assemblers to halt plans for additional production lines dedicated to its new XR.

Taiwan-based assembler fell 5 percent and rival (Foxconn) dropped 3.6 percent. Apple is widely considered the biggest customer for

Apple shares fell nearly 4 percent on Monday after the report by the daily, which fuelled concerns that the XR - the cheapest of three iPhones unveiled in September - was facing weak demand just days after it went on sale.

The Nikkei, citing supply chain sources, said Apple had also asked smaller iPhone assembler to stand by for rush orders, but the firm would receive no planned orders for the iPhone XR this season.

Wistron shares were down 0.8 percent on Tuesday.

"Foxconn's proportion of orders is bigger than Pegatron's with a ratio of about 6 to 4. Wistron doesn't have many orders the two, so the impact won't be so big there," said Nicole Tu, at in

Apple began shipping the iPhone XR on Oct 26 after two weeks of pre orders. The company had released the higher priced iPhone XS and XS Max more than a month earlier.

On Apple's post-earnings call last week, said he had very little sales data for the iPhone XR, but the other two models had got off to a "really great start."

Apple said sales for the usually busy holiday period would likely miss expectations sales in emerging markets including were weak.

Demand concerns have weighed on Apple's stock in the past few sessions, pushing its market value below $1 trillion.

On Tuesday, shares in other Taiwan-based Apple suppliers fell sharply as well.

and camera lens-maker were both down more than 6 percent. The Taiwan Weighted Index was down around 0.7 percent.

Among other Apple suppliers in the region, Hong Kong-based fell over 6 percent.

South Korean electronic parts suppliers and were down more than 7 percent.

Apple on Monday did not respond to a request for comment. Foxconn, Pegatron and Wistron declined to comment.

(Reporting by in Singapore and Jess Macy Wu in Taiwan; Editing by and Darren Schuettler)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 06 2018. 12:15 IST
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