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

LG Innotek Co

06/11/2018 03:38

Nov 6 (Reuters) - Apple Inc's  AAPL.O  Asian supplier and
assembler stocks fell on Tuesday on a media report that the
iPhone maker had told its smartphone assemblers to halt plans
for additional production lines dedicated to its new iPhone XR.
    Taiwanese assembler Pegatron Corp  4938.TW  fell nearly 4
percent and rival Hon Hai Precision Industry Co Ltd (Foxconn)
 2317.TW  fell 2.5 percent. Apple is widely considered the
biggest customer for Foxconn.
    Apple shares fell nearly 4 percent on Monday after the
report from the Nikkei financial daily, which fuelled concerns
that the iPhone XR - the cheapest of three iPhones unveiled in
September - was facing weak demand just days after it hit
shelves.
    The Nikkei, citing supply chain sources, said Apple had also
asked smaller iPhone assembler Wistron Corp  3231.TW  to stand
by for rush orders, but that the company will receive no planned
orders for the iPhone XR this season. Wistron shares were down
just over 1 percent on Tuesday.
    A bunch of Apple's other Taiwanese suppliers fell sharply,
including camera lens-maker Largan Precision Co Ltd  3008.TW ,
which was down more than 7 percent, and Flexium Interconnect Inc
 6269.TW , which fell 6 percent. The Taiwan Weighted Index
 .TWII  was down around 0.9 percent.
    Hong Kong-based acoustic components supplier AAC
Technologies Holdings Inc  2018.HK  fell 7 percent. South Korean
electronic parts suppliers Samsung Electro-Mechanics Co Ltd
 009150.KS  and LG Innotek Co Ltd  011070.KS  were down more
than 6 percent.
    The Nikkei report comes days after Apple said sales for the
usually busy holiday period would likely miss analyst
expectations as sales in emerging markets including India were
weak.  urn:newsml:reuters.com:*:nL2N1XC2E1
    Apple on Monday did not respond to Reuters' request for
comment. Foxconn and Pegatron declined to comment on specific
customers or products. Wistron was not immediately available for
comment.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Apple warns on holiday sales, sending value below $1 trillion   
 urn:newsml:reuters.com:*:nL2N1XC2E1
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Sayantani Ghosh in Singapore; Additional
reporting by Heekyong Yang in Seoul; Editing by Christopher
Cushing)
 ((sayantani.ghosh@thomsonreuters.com; +65 6870 3803; Reuters
Messaging: sayantani.ghosh.thomsonreuters.com@reuters.net))