The global smartphone market is contracting and its beginning to bite these companies.
European Apple Inc. (AAPL) - Get Report suppliers are under pressure on Wednesday, Aug. 22, after Hong Kong's AAC Technologies Holdings Inc. (AACAY) reported worse-than-expected second quarter earnings.
The maker of acoustic components for Apple reported a fall in profit for the first time in nearly four years. For the quarter ended in June, net profit fell 39% to 653 million yuan ($95 million), and revenue was down 14.5% to 3.79 billion yuan, its worst decline since 2009.
AAC, which supplies acoustic and haptic components for iPhones, blamed weaker-than-expected smartphone unit sales amid a contracting global smartphone market as shipments fell 2.4% in the first half.
This sent waves through Apple's European suppliers. Dialog Semiconductor plc (DLGNF) shares were down 1.47% in Frankfurt, changing hands at €17.80.
AMS AG (AMSSY) shares lost 1.26% to 67.30 Swiss franc. Shares in the Austrian sensor maker have lost more than 40% since a high of Sfr119.56 in March.
Infineon Technologies AG (IFNNY) fell 1.85% in Frankfurt Wednesday, changing hands at €21.23, extending a 16% drop since a June high.