Apple suppliers’ shares plunge in Hong Kong, China as Trump’s WeChat ban is seen pummelling iPhone shipments
- Shipments could decline by 25 to 30 per cent in the worst case scenario of Apple removing WeChat from its App Store globally, says Kuo Ming-chi, famous for his accurate predictions about Apple products
- Plunge in share prices marks drastic change of sentiment within days of Apple reporting upbeat third-quarter results
Apple suppliers in Hong Kong and China declined on Monday, after analysts predicted Donald Trump’s ban on WeChat could lead to a sharp drop in iPhone shipments, as the American technology giant may have to remove the popular app from its App Store.
On the mainland, Shenzhen-listed Luxshare Precision Industry, which derives 55 per cent of its income from Apple, plunged by as much as 7.7 per cent in early trading, before paring some of the losses, to close 2.3 per cent lower at 52.43 yuan. GoerTek, a producer of the AirPods wireless earbuds, fell 1.6 per cent to 38.01 yuan.
Hong Kong-listed AAC Technologies, which counts on Apple for 40 per cent of its revenue, dived 5.6 per cent to HK$57.8. AAC makes acoustic components for Apple’s iPhones, iPads and watches.
Handset assembler BYD Electronic International, which analysts expect to start supplying Apple as soon as this year, plummeted 7.5 per cent to HK$31. Sunny Optical Technology, a maker of camera modules also expected to become an Apple supplier, retreated 2.8 per cent to HK$140.7.
“The US government’s blacklisting of WeChat would have the greatest impact on iPhone among Apple’s products,” said TF Securities International analyst Kuo Ming-chi, who has become famous for his accurate predictions about Apple’s product development, in a report published on Sunday.
