Shares of Apple supply chain makers tumbling
A number of Apple’s supply chain makers in Taiwan have seen their shares decline sharply and also get downgraded recently amid growing concerns of sluggish sales of new iPhones launched in September.
The jittery price movement was further heaped up after the Wall Street Journal reported that Apple has cut production orders in recent weeks for all three new models due to lower-than-expected demand.
Shares of Foxconn Electronics (Hon Hai Precision Industry), the largest assembler for the new iPhone devices, hit an over 5-year low of NT$68.90 (US$2.23) in intraday trading during the November 21 session before closing at NT$70.60.
Actually, with its closing price of NT$71.00 seen on November 20, Foxconn’s market valued has dropped below NT$1 trillion, a new low since August 2013, according to market data.
In response to weak market sentiment, HSBC analyst Darryl Cheng has downgraded Foxconn (trading as Hon Hai) from “buy” to “hold” and also lowered the stock’s target price to NT$80 from NT$120.
With a closing price of NT$218 on November 20, Taiwan Semiconductor Manufacturing Company (TSMC) has seen its value drop since early October when it was trading at NT$263.