Apple Suppliers Stocks Fall as Barclays Downgrades iPhone Maker
Shares of Apple suppliers in Asia dropped after Barclays downgraded the tech giant due to concerns about weak demand for its products in 2024. Taiwan Semiconductor Manufacturing Company (TSMC), a top producer of advanced processors for companies like Apple and Nvidia, fell over 2%. Another major supplier, Hon Hai Technology Group (Foxconn), also saw a 1.33% drop. Technology and chip stocks, including Samsung Electronics and SK Hynix, as well as LG Electronics, also experienced declines. However, some experts believe that suppliers will still see growth due to the ongoing supercycle and the large number of iPhones that need replacement with 5G technology.
Barclays Downgrades Apple Stock on Weaker iPhone 15 Sales
Barclays downgraded Apple’s stock to underweight and lowered its price target from $161 to $160. The downgrade was based on concerns about iPhone 15 sales, which may indicate lower demand for future products like the iPhone 16. Analysts noted weakness in iPhone volumes and mix, as well as a lack of recovery in Macs, iPads, and wearables. However, UBS remains optimistic about TSMC’s prospects for growth in 2024 despite reducing its price target slightly. The company is expected to benefit from its strong position in advanced nanometer technologies and its involvement in cloud AI and edge AI markets.
Hot Take: Suppliers May Still Experience Growth Despite Downgrade
The downgrade of Apple by Barclays has caused shares of the company’s suppliers to fall in Asia. However, experts believe that there is still potential for growth due to the ongoing supercycle and the large number of iPhones that need to be replaced with 5G technology. While there may be concerns about iPhone 15 sales and future demand, the overall outlook for suppliers remains positive. It will be interesting to see how these factors play out in the coming months and whether the downgrade will have a lasting impact on the industry.
By
By
By
By