Apple’s market cap fell below $1 trillion, and its iPhone XR woes just clobbered stocks of its Asian suppliers

Apple CEO Tim Cook. Reuters Pictures
  • Shares of Apple’s suppliers across Asia were hit on Tuesday after the company suggested it would miss earnings targets.
  • Suppliers for other smartphone manufacturers, including Samsung and LG, also suffered.
  • Apple’s stock, which was down 0.5% in premarket trading on Tuesday, has dropped for five consecutive weeks, something that hasn’t happened since 2012.

Apple’s Asian suppliers tanked on Tuesday, one day after a report about the iPhone XR sent Apple’s stock down further after its market cap last week tumbled below $US1 trillion.

Citing unnamed sources, the Nikkei Asian Review reported on Monday that the company would halt plans for additional production lines for its new iPhone model, sending shares of the smartphone manufacturer’s suppliers across Asia lower. Meanwhile, Apple’s stock looks set to decline further, falling 0.5% in premarket trading on Tuesday.

Hon Hai Precision Industry, better known as Foxconn, fell 3.4%. Apple is widely considered to be Foxconn’s biggest customer, but other stocks of its suppliers were hit worse. Pegatron, a Taiwanese assembler, fell 4.6%, while the camera lens maker Largan Precision and Flexium Interconnect both fell 6.3%.

AAC Technologies, an acoustic components supplier based in Hong Kong, fell 3.5%. In South Korea, suppliers for Apple’s rivals Samsung and LG were down more than 6%.

Apple closed just above $US200 on Monday amid a wider tech sell-off that has seen other FAANG stocks – Facebook, Apple, Amazon, Netflix, and Google – fall in recent weeks.

Apple posted its worst trading day on Friday, with a 6.6% drop, continuing five weeks of declines, something that hasn’t happened since 2012. The company suggested it would miss analysts’ earnings targets for the usually busy holiday season, with demand in emerging markets lower than expected.