Apple’s Asian suppliers tanked after a bruising day of trading after a negative report about the iPhone XR sent Apple’s market cap tumbling below $1 trillion.
The Nikkei Asian Review reported, citing sources, that the company would halt additional production lines for its new iPhone model. That sent the smartphone manufacturer’s suppliers down across Asia, while Apple’s stock looks set for further declines — falling 0.5% in premarket trading on Tuesday morning.
Hon Hai Precision Industry, better known as Foxconn, fell 3.4%, tracking many Asian stock markets dropped. Apple is widely considered to be Foxconn’s biggest customer, but other stocks were hit worse.
Apple supplier Pegatron, a Taiwanese assembler, fell 4.6%. Other Apple suppliers in Taiwan, including camera lens maker Largan Precision and Flexium Interconnect both fell 6.3%.
Hong Kong-based acoustic components supplier AAC Technologies fell 3.5%. In South Korea, suppliers for Apple rivals Samsung and LG Innotek were down more than 6%.
Apple closed just above $200 amid a wider tech sell-off which has seen other FAANG stocks fall in recent weeks. The company posted its worst trading day last Friday with a 6.6% drop, continuing 5 weeks of the stock’s declines. The company missed analysts’ earnings targets in the usually busy holiday season with demand in emerging markets lower than expected.