iPhone suppliers take a tumble

Shares in Hon Hai Precision Industry, AAC Technologies and Apple's other key suppliers in Asia tumbled yesterday following reports that orders for iPhone 5 components had been cut.

Citing industry sources, Japan's Nikkei and the Wall Street Journal separately reported on Monday that Apple reduced by nearly half its first-quarter orders for high-resolution iPhone 5 screens from suppliers Sharp, LG Display and privately held Japan Display.

That news sent the shares of California-based Apple, the world's largest technology company, diving to US$498.51 in early trading on the Nasdaq Stock Market on Monday before closing at US$501.75, down 3.6 per cent. It was the first time in 11 months that the stock fell below US$500.

Taiwan-based Hon Hai, Apple's primary manufacturing contractor for the iPhone and iPad, saw its shares finished down 3.44 per cent yesterday at NT$84.20 (HK$22.52), their lowest close since reaching NT$84 on October 25 last year.

AAC, a Shenzhen manufacturer of mini-speaker components for the iPhone 5, fell more than 4 per cent in Hong Kong before ending at HK$27.90, dropping 2.79 per cent.

Shares in Sharp lost 2.73 per cent in Tokyo while LG Display slid 3.46 per cent in Seoul.