The fears of the peak of the iPhone shake Asian suppliers of Apple

TAIPEI / SEOUL (Reuters) – Parts of Asian suppliers and assemblers for Apple Inc. (AAPL.O) fell on Tuesday after several component makers warned of weaker-than-expected results, prompting some market watchers to call the peak of iPhones in several key markets.

After poor forecasts earlier this month, analysts and investors have worried about the state of Apple's business, contributing to the growing concern that iPhone sales will stagnate and hurt suppliers.

New warnings Monday from Japan Display Inc screen maker6740.T), British chipmaker IQE Plc (IQE.L) and Lumentum Holdings Inc (LITE.O), the leading provider of Face ID technology of the latest generation of iPhone, hurt technology stocks in Asia on Tuesday.

Assembler based in Taiwan, Hon Hai Precision Industry Co (Foxconn) (2317.TW) dropped by more than 3%. Rival Pegatron Corp (4938.TW) fell by more than 5%, but subsequently recovered its losses. Both companies consider Apple a major customer.

Taiwan Semiconductor Manufacturing Co (the world's largest chip maker),2330.TW), decreased by 2.6%, while Flexium Interconnect Inc (6269.TW) was down 1.5 percent. Taiwan's .TWII weighted index was down about 1.6%.

"The weakness of the Apple iPhone is a long-term problem for the Asian supply chain," said Arthur Liao, an analyst at Fubon Research in Taipei.

"For Apple, the delivery of the iPhone has reached its peak. For technology providers facing the future, they do not have any other big client than Apple. "

Shares of the tech giant based in Cupertino, Calif., Fell to their lowest level in more than three months on Monday.

Last week, a media announced that the iPhone maker had asked its smartphone fitters to suspend plans for additional production lines dedicated to its new low-priced iPhone. XR had put pressure on the stocks of its suppliers.

Analysts said the lack of technological breakthroughs had limited demand, which would persist over the next few quarters.

"In the absence of new technology in sight for the supply chain next year, this is not ideal for the companies involved," said Nicole Tu, an analyst at Yuanta Investment Consulting based in Taipei.

"Until the first half of 2019, we will probably see no breakthrough."

Lumentum announced Monday a reduction in its earnings and revenue forecast for the current quarter, while IQE warned that current year results would be lower. Japan Display also reduced its sales and margin outlook for the year.

NO TRUST

Apple warned earlier this month that holiday sales would miss Wall Street expectations due to weak emerging markets, including India, and currency costs.

Among other Apple suppliers in Asia, the manufacturer of acoustic components AAC Technologies Holdings Inc (based in Hong Kong)2018.HK) collapsed by more than 6 percent.

South Korean Suppliers of Electronic Parts Samsung Electro-Mechanics Co Ltd (009150.KS), Apple's supplier of multilayer ceramic capacitors, has dropped more than 5%, while LG Innotek Co Ltd (011070.KS) plunged 9.5%.

Apple announced earlier this month that it will no longer give the number of iPhones, iPads and Macs sold during the quarter, a tightly monitored indicator and a key indicator of the company's success.

This decision led analysts to question the activities of the company and the share price has since fallen by 12.6%.

"This indicates that the company itself does not trust its performance yet," said Park Jung-hoon, fund manager at HDC Asset Management, a shareholder of Samsung Electronics.

"Although Apple has positioned itself as a manufacturer of very expensive devices offering high-end products, its strategy has not worked in emerging markets, especially China and India. , Chinese sellers making products similar to those of the iPhone, "he said.