Apple Inc. (NASDAQ:AAPL) shares reversed in early trading as shares in suppliers to the tech giant came under pressure from a negative note on iPhone X demand by JPMorgan’s European team.
The investment bank downgraded shares of Austrian sensor firm AMS AG to ‘neutral’ today, citing concerns over the company's heavy exposure to Apple in the second half of last year.
JPMorgan’s analysts said: “The meaningful deterioration in iPhone X orders is likely to weigh on AMS' near-term guidance and share price performance."
They added: "The weakness in orders seems to be a reflection of slower-than-expected customer uptake of iPhone X in the midst of improving supply chain yield, thus shortened lead times."
Apple shares were down 0.9% in early New York trading at US$175.47.
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