Apple Inc.’s (NASDAQ: AAPL) problems have rippled to its Asia components suppliers. Shares in many of these fell in anticipation of weak earnings from the American consumer electronics giant. Apple’s forecast that its current quarter will be lackluster only made the outlook for these companies worse.
Source: courtesy of Apple Inc.
MarketWatch says about Apple’s Asian suppliers:
Analysts at Barclays on Wednesday downgraded four key hardware stocks from Taiwan after Apple Inc.’s sales guidance for the second quarter came in below expectations.
The research firm cut its recommendation on shares of Largan Precision Co. and Cheng Uei Precision Industry Co. to equal-weight, and on Foxconn Technology Co. and Simplo Technology Co. to underweight. All four stocks were previously rated overweight. The downgrade follows similar recent downgrades for Hon Hai Precision Industry Co. and Quanta Computer Inc.
Although iPhone and iPad orders should be weak in the second quarter of 2013 from “product transitions, we believe that without a larger-size iPhone, sell-through might be uncertain for the rest of 2013 as well,” Barclays analysts led by Kirk Yang wrote in a report.
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