Chinese tech stocks slump after report that Apple has cut its iPhone X orders by 40%
Apple is a company that can make or break the fortunes of its suppliers, that is why when reports started emerging yesterday that the Silicon Valley juggernaut has cut its suggested iPhone X order forecast from 50 million to 30 million, a lot of Chinese tech stocks experienced quite a ravaging, swimming in a sea of red, as you can see in the stock exchange snapshot below.
All it took is one report in a Taiwanese publication for Apple's supplier Lens Technology to plunge 8%, for instance. The report said that Foxconn's Zhengzhou plant, where the iPhone X is assembled, stopped hiring new blood, and a few unnamed sources that claimed it is because of the eventual 40% order cut by Apple. This comes hot on the heels of other warnings about the new iPhones' uptake and analysts lowering their target on Apple's stock from "buy" to "hold."
Market research firm JL Warren Capital LLC also warned that the handset's shipments may slump, after the early adopters have all equipped themselves with one at the $999 starting price, and offered its own supply chain sources as proof for diminished orders by Apple. There is a "weak demand because of the iPhone X’s high price point and a lack of interesting innovations," argued the market intelligence shop, adding that the "bad news here is that highly publicized and promoted X did not boost the global demand."