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South Korea’s Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660), which supply memory chips to Apple, fell 1.2% and 1.7%, respectively, while Hong Kong’s AAC Technologies (OTC:AACAY) Holdings Inc (HK:2018), which makes audio equipment, fell 1.9%.
Taiwan’s Hon Hai Precision Industry Co Ltd (TW:2317), which assembles iPhones for Apple, sank 1.5%, while chip supplier TSMC (TW:2330) lost about 0.4%.
In Japan, Murata Mfg Co (TYO:6981), which supplies key electronic components to Apple, fell 1.2%, while Sony Corp (TYO:6758), which supplies display and camera modules to Apple, fell 0.4%.
Apple’s shares slid 2.8% on Tuesday after media reports showed a 24% slump in Chinese iPhone sales in the first six weeks of 2024. The drop came as Apple grapples with increased competition from local players such as Huawei and Xiaomi (OTC:XIACF) Corp (HK:1810) amid shrinking consumer spending.
Softening Chinese sales were a key pain point for Apple over the past year, driven in part by worsening economic conditions in the world’s second-largest economy. China is Apple’s biggest production base for iPhones, and accounts for roughly 20% of phone sales.
Beijing’s economic forecasts for 2024, revealed on Tuesday, also underwhelmed markets.
Apple had slashed the prices of certain iPhone models in China, a trend that bodes poorly for its bottom-line. But the firm is facing increased competition for its higher-end products from Huawei, especially as the Chinese firm saw a sales recovery after the release of its Mate 60 series last year.
