Shares of Apple Inc.’s suppliers across Greater China greeted the company’s latest product line-up, including its most-expensive ever iPhone, with losses.
While there were a few exceptions, the lack of any major
surprises in Tim Cook’s much-anticipated unveiling weighed on stocks from Taiwan’s Pegatron Corp., an iPhone assembler, to South Korean screen-maker LG Display Co.
Hong Kong-listed Cowell e Holdings Inc.—a maker of iPhone cameras that derives about 81 percent of its revenue from Apple, according to data compiled by Bloomberg—tumbled as much as 6.6 percent, while Taiwan’s Catcher Technology Co. slid the most since November. Catcher makes metal cases used in laptops and smartphones, and the new iPhones have glass cases, said Allan Lin at Concord Securities Co.
Quanta Computer Inc., assembler of the Apple Watch, got a boost though, along with Hong Kong’s AAC Technologies Holdings Inc., which Jefferies Group noted should benefit from an
upgrade to iPhone sound functions and the removal of the home button.
A Japanese Apple supplier hits a record
Nidec Corp., a Japan-based supplier to Apple Inc., has surged to a fresh record—but not because of the new iPhone, which is weighing on other Apple-linked companies in Asia.
The company’s unveiling the past week of several new automotive products—including a traction motor system for electric vehicles— were well-timed, coinciding with the Frankfurt Motor Show and China announcing plans to end production and sales of internal-combustion vehicles.
Nidec climbed as much as 4.2 percent on Wednesday, while shares of Apple Inc
itself dropped after its new product line-up fell flat
Nidec is raising market expectations with its “new products leveraging distinctive technologies,” Nomura analyst Manabu Akizuki wrote in a report.
The traction motor system is “particularly noteworthy as a new main drive motor system, the key component for electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs),” said Akizuki, who rates Nidec a buy.