Chinese Tech Stocks Take A Dip As Apple Announces 40% Reduction in iPhone X Orders

by Habeeb Onawole 2

The importance of Apple in China cannot be underestimated. The American company assembles its devices in the Asian country via its long-term partner Foxconn and also sources for parts from several suppliers. So when Apple makes a decision, everyone involved with Apple gets hit….and the stock market too. Take for example Apple’s decision to cut its iPhone X orders by 40%.

iPhone X

The announcement was reported by a Taiwanese publication Economic Daily News, saying Apple has cut its iPhone X orders from 50 million to 30 million. Apple suppliers Lens Technology and General Interface Solution Holding Ltd. watched their stocks dip by 8% and 8.4% respectively. Foxconn has also been reported to have halted its hiring process.

 

Above is a tweeted image of the stocks of multiple Apple suppliers whose stocks got hit following the publication.

Analysts have cut their iPhone X shipment forecasts for Q1 2018 due to the low demand during the holiday period. Some of them like Sinolink Securities Co. analyst Zhang Bien, and New York-based JL Warren Capital LLC have said shipments in Q1 2018 will drop by 10 million and 5 million respectively compared to Q4 2017.

The drop in orders is said to be as a result of “the iPhone X’s high price point and a lack of interesting innovations,” according to JL Warren.

READ MORE: Apple Raises iPhone Prices In India After Hike In Customs Duty

Apple expected the anniversary edition iPhone X to increase its global shipments but its competitors such as Samsung – which has recovered from the Note 7 debacle by the way; Huawei, OPPO, and Xiaomi haven’t been slacking either. The companies are doing well in key markets, India most especially, as they offer key features of the iPhone X at various price categories.

(Sources: 1, 2, Via)

 

 

 

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