Apple Asian suppliers cheer better-than-feared earnings

  • Stock Market News
Apple Asian suppliers cheer better-than-feared earnings
Credit: © Reuters. Shares of Apple Inc’s Asian suppliers rose on Friday, tracking an after-hours bounce in the tech giant as it clocked quarterly earnings that were not as bad as expected, and also forecast revenue growth in the current quarter. 

Apple Inc (NASDAQ: AAPL ) jumped 6% in extended trade after it clocked a smaller-than-expected decline in profit and revenue for the March quarter. The iPhone maker also said it will see mild revenue growth in the June quarter. 

A more upbeat tone from the tech titan pointed to potentially stronger demand for Apple’s suppliers.

In Taiwan, shares of major suppliers TSMC (TW: 2330 ) (NYSE: TSM ) and Hon Hai Precision Industry Co Ltd (TW: 2317 ) (Foxconn) jumped 1.5% and 2.3%, respectively. The two supply Apple with electronic components, while Foxconn also assembles iPhones for the firm.

In South Korea, LG Innotek Co Ltd (KS: 011070 ), which makes 3D sensing modules for Apple, surged 4.3%. Apple accounts for roughly 70% of the company’s sales, especially after South Korean conglomerate LG scuttled its own smartphone division. 

Samsung Electronics Co Ltd (KS: 005930 ), which is a major competitor to Apple but also supplies it with displays and memory chips, rose 0.8%. Memory chip supplier SK Hynix Inc (KS: 000660 ) added 1%, while 

In Hong Kong, AAC Technologies (OTC: AACAY ) Holdings Inc (HK: 2018 ), which supplies Apple with acoustic components, surged 3.6%. 

Most of the aforementioned stocks had fallen in the run-up to Apple’s earnings, as markets feared that the iPhone maker will clock a more pronounced sales decline due to increased competition in major market China. 

But while Apple’s iPhone sales did miss expectations, earnings were buoyed by strength in its services, as well as steady accessory sales. 

CEO Tim Cook told Reuters that Apple expects low single-digit revenue growth in the June quarter, a marked improvement from the four quarters of revenue declines faced by Apple. 

Still, the company offered scant cues about its plans to integrate artificial intelligence, amid widespread adoption of the technology by its rivals. Analysts expect AI integration to drive the next wave of iPhone sales.

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