Shares in Apple Inc (NASDAQ:AAPL, ETR:APC) suppliers dropped in Asia following a downgrade by the investment banking arm of Barclays to shares in the iPhone maker amidst concerns over sustained weak demand for its products this year.
Taiwan Semiconductor Manufacturing Company (TSMC), a key supplier for Apple and Nvidia, saw a decline of over 2%.
Similarly, Hon Hai Technology Group (Foxconn), which assembles iPhones, experienced a 1.33% fall.
This downturn affected other technology and chip stocks, including Samsung Electronics (KRX:005930) and SK Hynix, with drops over 2%, and LG Electronics, which fell 1.78%.
Despite this, Ray Wang from Constellation Research told CNBC’s 'Street Signs Asia' that iPhone 15 suppliers are witnessing robust growth, foreseeing continued iPhone upgrades to 5G.
Barclays' downgrade of Apple, reducing its stock to 'underweight' with a price target cut to $160 from $161, was driven by concerns over lower iPhone 16 demand.