The stock prices of Apple Inc’s Asian suppliers took a hit on Thursday as concerns over a decline in iPhone sales loomed large. Companies like Taiwan’s TSMC and Hon Hai Precision Industry saw their stocks drop by 1.5% and 1.9% respectively. Meanwhile, AAC Technologies in Hong Kong, which supplies audio equipment to Apple, experienced a dip of up to 2.2%. On the other hand, Samsung Electronics, a major competitor of Apple, witnessed a rise of 1%.
With Apple set to report its March-quarter earnings, analysts are predicting a steep decline in revenue. The tech giant is expected to announce earnings per share of $1.5, similar to the previous year, on a revenue of $90.32 billion compared to $94.8 billion the year before. This decline is primarily attributed to slowing iPhone sales and weaker demand in the Chinese market, where local players like Xiaomi and Huawei are gaining traction.
Apple recently lost its spot as the best-selling smartphone maker to Samsung in the first quarter of 2024. In an effort to boost sales, the company is looking to integrate artificial intelligence features into the iPhone. Talks with OpenAI and Google indicate a move towards generative AI capabilities. While these features are expected to be unveiled at the annual developer conference in June, investors are eager to hear more about Apple’s plans during the earnings call.
Despite these efforts, Apple’s shares fell by 0.6% on Wednesday and are down nearly 9% for the year. This downward trend has resulted in the company losing its position as the world’s most valuable listed company to Microsoft. This shift in market dynamics highlights the challenges Apple faces in a competitive landscape where innovation is key to staying ahead.
The impact of declining iPhone sales on Apple’s Asian suppliers underscores the interconnected nature of the tech industry. As Apple navigates through these challenges, the adoption of artificial intelligence and competition from rivals will play a crucial role in shaping the company’s future trajectory. Investors will closely monitor the upcoming earnings report and any announcements regarding AI integration to gauge the company’s prospects in the ever-evolving smartphone market.