Apple (AAPL) 's surprise fall in second quarter iPhone sales has rippled through stock markets around the world Wednesday, with suppliers to the world's biggest tech company drifting lower amid concerns for demand of its flagship product.
Shares in Dialog Semiconductor (DLGNF) , a key Apple supplier, were marked 2.14% lower at €41.92 each by early afternoon in Frankfurt, after slumping as much as 3.3% in the opening minutes of trading, extending its three-month decline to more than 6%. Dialog is a long-time supplier of power management ICs (PMICs) used in iOS devices. Dialog gets close to three-quarters of its sales from Apple.
Other companies in the Apple supply-chain were also under pressure Wednesday, with chipmaker STMicroelectronics (STM) falling 1.95% to €14.81 in Paris and AMS International (AMSSY) , which supplies optical sensors to both Apple and Samsung (SSNLF) , marked 1.7% lower at €54.50 in Amsterdam. Infineon Technologies (IFNNY) edging down 0.45% to €18.91 each in Frankfurt.
Imagination Technologies (IGNMF) , a developer of GPU core designs used by third-party chipmakers, slipped 1.25% in London trading to change hands at 98.75 pence, extending a massive decline of more than 60% since Apple told Imagination last month it will stop using its GPU designs within its A-series processors in the next two years.
Apple shares were indicated 1.19% lower pre-market trading at $145.70 each after the tech giant reported mixed results for its fiscal second quarter and issued weaker-than-expected guidance for the following three months.
Apple reported earnings of $2.10 per share on revenue of $52.9 billion for the three months ending in March, against analysts expectations of $2.02 per share on revenue of $53.02 billion.
The Cupertino, Calif., company said its shipped 50.8 million iPhones in the second quarter. FactSet expected iPhone unit shipments of 52 million during the period.
Average selling price for the iPhone hit $655 during the quarter, less than the $666 expected by Wall Street.