After critics were unimpressed by the iPhone 8, Apple received “substantially lower” pre-orders than previous models, according to Bloomberg. While Apple has yet to release the actual numbers on their opening week of sales, analysts are starting to get worried. The fallout of what can only be regarded as disappointing for the company has already begun to show. Apple stock has dropped from $164.05 to $150.02 in less than a month and its suppliers are starting to feel the effects:
Hon Hai Precision Industry Co., which assembles the iPhone and other Apple devices, has fallen 10 percent in Taipei since Apple unveiled its collection of new gadgets for the holidays this month. Other suppliers across the region, including Taiwan’s Pegatron Corp. and South Korea’s LG Innotek Co. have plunged more than 12 percent.
Hon Hai was only one the companies that was hurt by the poor sales. Bloomberg reports that other suppliers such as
Pegatron slumped 4.4 percent. TSMC dropped for a third day. AAC Technologies Holdings Inc., another supplier, retreated 6.7 percent in Hong Kong, and GoerTek Inc. capped its biggest loss since July 3 in China’s Shenzhen.
It appears that Apple’s new products are jeopardising both the company’s primacy in the tech world as well as their stock’s health. After a year of steady gains it look like it could all be coming apart for Apple.
Major competitors such as Samsung and Huawei have existing devices that can compete with or overshadow Apple’s flagship product and could continue to diminish the company’s sales going forward.
Investors should keep an eye on Apple’s stock and statements in the coming few days. A disappointing sales report could spell disaster for them.
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