AMS Plunges on Report Apple Is Replacing Its Chips in Devicesby
Contracts worth more than $110 million are affected: report
Shares decline as much as 26 percent in Zurich trading
AMS shares plunged 26 percent to 27.95 Swiss francs at 4:40 p.m. in Zurich, where the stock is listed, giving the company a market value of 2 billion francs ($2.1 billion). They declined as much as 27 percent, the steepest intraday loss since June 10. About 3.5 million shares changed hands, more than eight times average for the past three months.
Apple is replacing AMS as supplier for a microphone component and has postponed an order for chargers from the Unterpremstatten, Austria-based manufacturer, Finanz und Wirtschaft reported, citing sources it didn’t name. Contracts worth more than 100 million euros ($110 million) may be affected, the newspaper said. AMS couldn’t immediately be reached by phone or e-mail to comment on the report.
A representative for Apple didn’t immediately respond to a phone call seeking comment.
AMS will report sales of 146.6 million euros in the current quarter, according to the average of analysts estimates compiled by Bloomberg. AMS fell the most in more than seven years on June 10 after Finanz und Wirtschaft reported Apple was replacing the company as supplier for a part boosting the so-called near-field communication antenna in iPhones and the Apple Watch.