Component suppliers fall following Apple announcement
Shares of Apple suppliers plunged Thursday after the tech giant said revenue for the holiday quarter would be lower than anticipated.
Apple CEO Tim Cook said in a letter to shareholders released after markets closed on Wednesday attributed that most of the revenue drop will stem from lower iPhone sales, China’s slowing economy and trade tensions between China and the U.S.
Apple shares have been down more than 7 percent in Thursday’s premarket session, slicing 95 points off the Dow Jones Industrial Average when the markets begin trading.
Apple suppliers’ shares tumbled on the news.
STMicroelectronics shares were down more than 9 percent. The company builds imaging and proximity-sensor products used in the iPhone X.
Skyworks Solutions, which makes wireless chips, was down more than 5 percent.
Cirrus Logic, which makes audio chips for Apple products, dropped 7 percent.
AMS, an Austrian firm that produces facial recognition sensors used in the iPhone X, has lost 17 percent in European trading.
Also falling in premarket action were shares of Broadcom, down nearly 4 percent, Qorvo, down more than 5 percent, and Lumentum, down more than 7 percent.