October 19, 2017 4:11:41 pm
Suppliers to Apple Inc fell after a newspaper report that orders for iPhone 8 models have been cut for the rest of the year amid a lukewarm reception. Pegatron Corp, a contract assembler, fell as much as 2.6 percent in early Taipei trade while Catcher Technology Co slipped as much as 3.6 percent. Apple has cut orders linked to iPhone 8 models by more than 50 percent over the rest of the year, the Taipei-based Economic Daily News reported, citing unidentified supply-chain sources. It didn’t elaborate on precisely what sort of orders had been pulled, nor how it arrived at that number.
Such an early pullback will have severe impact on a sprawling supply chain that encompasses the likes of Hon Hai Precision Industry Co and Pegatron as well as smaller components makers from AAC Technologies Holdings Inc to Catcher and Merry Electronics Co Apple is holding a staggered release of its newest devices as iPhone 8 models began hitting stores in September while the top-of-the-line iPhone X is expected next month.
“Investors have heard iPhone 8 sales aren’t strong, so suppliers such as Merry and Catcher have been weak. It’s not a surprise. Certainly Hon Hai could rise as it’s the sole assembler of the iPhone X,” said Anderson Chien, a Cathay Futures Corp executive vice president. The lowered orders mean shipments of iPhone 8 models could come in at just 5 million to 6 million per month in November and December, the newspaper reported without elaborating.
The US company is also grappling with production hiccups that could disrupt supply for the more highly anticipated iPhone X, the Economic Daily said without citing its sources. The issue at present wasn’t difficulties in securing supply of cutting-edge organic light-emitting diode screens or 3D sensors as initially thought, but of glass panels, the newspaper said. Apple wasn’t immediately available to comment.
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