July 14, 2024
Shares of Apple suppliers fall on report of iPhone ban in China

TAIPEI (Reuters) – Shares of several major Apple suppliers fell on Friday after reports that China extended a ban on the use of iPhones by state employees, hurting sales prospects in one of the US company’s biggest markets. Doubts have increased about

Sources familiar with the matter told Reuters that employees of at least three Chinese ministries and government bodies were told not to use iPhones at work.

Taiwan’s TSMC, the world’s biggest contract chip maker and a key Apple supplier, fell nearly 0.7%, trailing a nearly 0.3% decline in the benchmark index.

Shares of ASE Technology Holding Co Ltd, one of the world’s largest semiconductor testing and packaging companies, fell more than 2%, while those of camera lens maker Largan Precision Co Ltd fell more than 3%.

China may expand its restrictions on officials’ use of iPhones, said Alan Huang, executive director of Mega International Investment Services Corp. in Taipei.

“In recent years, Chinese nationalism has been causing trouble, affecting policy guidance,” he said.

New smartphones from Chinese mobile phone maker Huawei Technologies will also do well, said Huang, which will put pressure on sales of the new iPhone 15.

In China, Luxshare Precision Industry, a maker of connector cables for iPhones and MacBooks as well as AirPods, which also owns factories capable of making iPhones, fell 1.5%. Its shares were also affected by the Huawei launch last week.

Japanese chip equipment maker Tokyo Electron fell 4% on Friday.

About one-fifth of Apple’s revenue is generated in China, where thousands of workers are employed by the company and its suppliers. During a visit to Beijing in March, Chief Executive Tim Cook emphasized Apple’s long relationship with the country.

(Reporting by Ben Blanchard and Jenny Kao; Additional reporting by Brenda Goh in Shanghai and Sam Nussey in Tokyo; Editing by Edmund Claman and Clarence Fernandez)

Source: finance.yahoo.com

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