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Shares of Apple's suppliers have fallen throughout Asia after US President Donald Trump tweeted that the tech giant should manufacture products in the US if he wanted to avoid the rights customs duties on Chinese imports.
Trump's comment came after Apple told US trade officials on Friday that Washington's proposed tariffs in a growing trade war with China would affect the prices of a "wide range" of Apple articles, including the Apple Watch. He did not mention the iPhone.
Shares of China-based Apple suppliers, Luxshare Precision Co., Shenzhen Sunway Communication Co. and Suzhou Dongshan Precision Manufacturing, all fell 10%. Lens Technology, Universal Scientific Industrial Shanghai and Suzhou Anjie Technology dropped 6 to 8%.
In Taiwan, camera maker Largan Precision fell nearly 8%, Foxconn, formerly known as Hon Hai Precision Industry, by 3.4%, while Pegatron assembler lost nearly 4% .
ASE Technology, which counts Apple among its major customers, lost 2.9%.
Dog Bor-yi, an analyst at Cathay Futures Consultant, based in Taipei, said that Apple's component supply chain in Taiwan would be hit hard if the US raised tariffs on products imported from China.
"People have concerns about the stock market.This is not the market of a seller, but it is also not the market of a buyer.Nobody knows to how deep the well is, "he said.
The technology sector is one of the biggest potential losers in Washington's proposed $ 200 billion tariff list for Chinese imports, as tariffs would make imported computer parts more expensive.
Trump warned on Friday that he was ready to impose tariffs on virtually all Chinese imports to the United States, threatening duties on an additional $ 267 billion worth of goods.
AAC Technologies, listed in Hong Kong, fell more than 5%. The company provides acoustic components and haptic technology – which allow users to receive tactile sensations from an interface – for Apple products such as the iPhone, iPad and Apple Watch.
In Japan, Nissha fell by 0.4%, Japan Display by 0.7% and Sharp by almost 1%.
"People are a bit freaked out today, and in the longer term the focus will be on the market reaction after the release of the latest Apple models," said analyst Kevin Chung. JihSun Securities Investment Consulting.
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