Apple’s Taiwanese component suppliers track iPhone maker’s fluctuating stock market fortunes
- Island home to about 15 per cent of 195 globally listed companies that supply iPhone maker
- Biggest suppliers as well as Taiwan index decline after Apple reports worse-than-expected sales
The fortunes of Apple’s Taiwan-based suppliers are so closely linked to the iPhone maker’s stock that they seem to mirror its movement.
About 15 per cent of the 195 globally listed companies that supply Apple are based in Taiwan, according to Bloomberg, including five of the California-based company’s biggest suppliers. Although, most of its suppliers are based in the United States, Taiwan is home to the most important, ranked by how much money Apple spends on their goods.
Apple-related stocks hammered in China, Hong Kong markets after US smartphone giant cuts revenue outlook
Hon Hai Precision Industry, the world’s biggest maker of electronic components, accounts for more than 50 per cent of Apple’s cost of goods.
Shares in Hon Hai Precision Industry, Taiwan Semiconductor Manufacturing Company (TSMC), Catcher Technology, and Zhen Ding Technology Holding, have shown a significant correlation with Apple stocks over the past year.
On Monday morning, these stocks rebounded after heavy losses in the first three trading sessions of 2019.
Hon Hai Precision Industry advanced 2.1 per cent to NT$69.00, poised to break a three-day losing streak. Still, the stock is 2.5 per cent lower than its year-end level of NT$70.80 on December 28.