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European chip makers see stocks tumble after Apple’s disappointing revenue forecast

Following Tim Cook’s letter to investors warning them of poor Q4 iPhone sales, Apple’s major suppliers have been hit hard, especially those in Europe.

A number of European chip makers have seen stocks tumble overnight. CNBC reports that Austrian chipmaker AMS saw share fall by 19%, while Swiss firm STMicroelectronics dropped around 7%.

Shares of Anglo-German chip supplier Dialog Semiconductors also fell by 7% at the open in Frankfurt. In October, Apple agreed to buy a portion of Dialog’s business in a $600 million deal, reports the publication.

Stocks of Dutch firm ASM International and Germany-based Siltronic also fell at the open amid pressure in the semiconductor industry. The broader European Stoxx 600 tech index was the worst performing sector in Europe on Thursday, trading down around 2%.

Shortly after the letter, Apple shares were marked 8.2% lower at $144.90 – the lowest since April 2017. This put the company’s stock at a three-month loss of around 38.6%. This also values Apple at just over $690 billion – quite a contrast from October 2018 when the tech giant was valued at $1.1 trillion.

In Thursday’s investor letter, Apple chief Tim Cook blamed economic weakness, especially in China, for lower revenues than previously estimated.

“While Greater China and other emerging markets accounted for the vast majority of the year-over-year iPhone revenue decline, in some developed markets, iPhone upgrades also were not as strong as we thought they would be,” he said.

Are you a chip maker or distributor that has been affected by Apple’s disappointing revenue forecast? If so, send PCR an email at laura.barnes@futurenet.com to have your say.

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