European Apple Suppliers Under Pressure After Hong Kong's AAC Plunges

The global smartphone market is contracting and its beginning to bite these companies.

European Apple Inc. (AAPL) 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.

STMicroelectronics NV (STM) shares lost 0.73% in Amsterdam to €17.05

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.