AMS Falls on Report Apple Is Replacing Its Chips in IPhones

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AMS AG fell the most in almost four years after a newspaper reported that the Austrian chipmaker has lost a contract to supply parts for Apple Inc.’s iPhones and watches.

The shares declined as much as 27 percent in Zurich, the steepest intraday fall since Aug. 9, 2011. The stock fell 23 percent to 43.25 Swiss francs as of 11 a.m. local time. The number of shares traded was almost seven times the three-month daily average.

Apple is replacing AMS as supplier for a part boosting the so called near-field communication antenna in iPhones and the Apple Watch, Finanz und Wirtschaft reported, citing sources it didn’t name. Apple contributes almost 20 percent of AMS’s revenue, according to data compiled by Bloomberg. AMS reported revenue of 464 million euros ($528 million) last year.

Moritz Gmeiner, a spokesman for AMS, said the company doesn’t comment on individual customers. A representative for Apple couldn’t immediately be reached.

“The loss of Apple’s NFC booster socket would marginalize AMS’s number one growth driver,” Bernd Laux, a Frankfurt-based analyst at Kepler Cheuvreux, wrote in a note to clients. He cut his rating on the stock to hold from buy, reducing the price target to 40 francs from 60 francs.

NXP Semiconductors NV, based in Eindhoven, the Netherlands will supply all of the NFC parts in future Apple products, according to the report in Finanz und Wirtschaft. Joon Knapen, a spokesman for NXP Semiconductors, declined to comment.

AMS last year ended talks to buy Germany’s Dialog Semiconductor Plc, another supplier to Apple, after the companies failed to agree on the terms of a transaction. The deal would have allowed the companies to pool resources and reduce their dependence on Apple.

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