CUPERTINO, CALIFORNIA – SEPTEMBER 12: The brand new iPhone 15 Professional is displayed throughout an Apple occasion on the Steve Jobs Theater at Apple Park on September 12, 2023 in Cupertino, California. Apple revealed its lineup of the newest iPhone 15 variations in addition to different product upgrades throughout the occasion. (Picture by Justin Sullivan/Getty Photographs)
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Shares of Apple suppliers fell in Asia on Wednesday after Barclays downgraded the iPhone maker on issues that demand for its merchandise would stay weak in 2024.
Taiwan Semiconductor Manufacturing Firm fell greater than 2% in Wednesday morning buying and selling. TSMC is a high producer of the world’s most superior processors for firms equivalent to Apple and Nvidia.
One other main Apple provider Hon Hai Know-how Group, often known as Foxconn, dropped 1.33%. Taiwan-based Foxconn is the world’s largest contract electronics maker and assembles Apple’s iPhones.
Know-how and chip shares together with Samsung Electronics and SK Hynix dropped greater than 2%, whereas LG Electronics fell 1.78%, dragging South Korea’s Kospi decrease 1.85%.
“We’re seeing that suppliers are nonetheless seeing strong progress on the iPhone 15. We’re in the course of a supercycle,” mentioned Ray Wang of Silicon Valley-based Constellation Analysis on CNBC’s “Avenue Indicators Asia.”
“There’s nonetheless 200 to 300 million iPhones that get changed onto 5G, a minimum of for the following 24 months, so I am undecided precisely the downgrade on progress, however on valuation, I can perceive possibly that is the place the hit can be,” Wang instructed CNBC on Wednesday.
On Tuesday, Barclays downgraded Apple’s inventory to underweight and trimmed its worth goal to $160 from $161, citing weak spot in iPhone 15 gross sales, signaling probably decrease demand for iPhone 16 and different merchandise. Apple shares closed 3.58% decrease on Tuesday.
“We’re nonetheless choosing up weak spot on iPhone volumes and blend, in addition to a scarcity of bounce-back in Macs, iPads and wearables,” mentioned analyst Tim Lengthy on Tuesday, in a observe to purchasers.
UBS in a Jan. 3 report mentioned that TSMC was “poised for a powerful rebound in 2024” and maintained a purchase score regardless of trimming its worth goal to 750 Taiwan {dollars} from 760 Taiwan {dollars}.
“We expect TSMC is in a candy spot for progress over the following 18 months from its very excessive share on 4-nanometer and 3-nanometer and leverage to builds on cloud AI plus positioned to learn from any rise in edge AI lifting massive endpoint markets of PC, smartphone and IoT,” mentioned UBS.
– CNBC’s Shreyashi Sanyal contributed to this report.
