Apple Suppliers Drop in Asia Trading on Missed Profit Target
Apple Inc. (AAPL) suppliers Samsung Electronics Co. and Toshiba Corp. (6502) led declines in Asian trading and Hon Hai Precision Industry Co., the iPhone and iPad assembler, fell after the world’s most valuable tech company missed profit estimates.
Toshiba, the world’s largest flash memory maker after Samsung, slumped 7.3 percent, the steepest drop since the plunge after Japan’s March 11, 2011 earthquake, to 242 yen at the close of trading in Tokyo. Hon Hai dropped 4.3 percent, the biggest slump since April 30, to NT$81.90 at the Taipei close.
“Apple’s result dispelled hopes that its suppliers would be doing better than other technology companies,” Makoto Sengoku, a Tokyo-based analyst at Tokai Tokyo Securities Co., said today by phone. “Investors aren’t patient enough to wait and see potential demand increases for new models, as they focus on the short-term performance.”
Apple itself fell 4.9 percent in German trading, adding to concern orders for components to make the iPhones and iPad tablet computers may slow. Apple missed analysts’ estimates as customers held off on iPhone purchases while waiting for a new model to be introduced later in the year.
Samsung dropped 1 percent to 1.16 million won as of the close in Seoul trading.
Apple’s net income climbed 21 percent to $8.82 billion, or $9.32 a share, in the period that ended June 30, the Cupertino, California-based company said yesterday in a statement. Sales rose 23 percent to $35 billion. Analysts had predicted profit of $10.37 a share on revenue of $37.2 billion, the average of estimates compiled by Bloomberg.
While Apple outgrew its closest technology-industry peers, the company’s sales climbed at the slowest pace since mid-2009.
To contact the reporter on this story: Naoko Fujimura in Tokyo at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Tighe at email@example.com