Chinese Apple suppliers’ shares climb after iPhone maker rebounds in New York trading
- Their longer-term performance will be decided by developments in the US-China trade war, says analyst
Shares of Apple’s suppliers in China climbed on Monday after the smartphone giant rebounded strongly from a recent 22-month low.
All 21 mainland China-listed companies that supply the iPhone maker, according to Bloomberg data, closed higher on Monday, as did the four that are listed in Hong Kong.
Apple isn’t having a crisis, but their market share is gradually being eroded by competitors
By Friday’s close in New York, Apple had soared by nearly 20 per cent to US$170.41, a strong comeback from US$142.19 on January 3, its lowest point since April 2017.
Apple reported a sharp growth in its services business at the end of January, according to Reuters, helping to boost its own shares and those of its suppliers. Investors are banking on services like Apple Music and the App Store to lift the company, after weakening demand for handsets caused iPhone sales to dip for the first time in the final quarter of 2018.
Monday’s gains came despite new data showing a slump in Apple’s iPhone shipments in China. Handset exports to China fell by about 20 per cent in the fourth quarter amid an overall shrinking of demand in the world’s largest smartphone market, according to a report by research firm IDC, published on Monday.