Apple Inc.'s (AAPL) recent market woes look set to continue Monday as the world's biggest tech company struggles to gain control of the negative news headlines surrounding its much-hyped product launch earlier this month.
Apple shares were marked 0.57% lower in pre-market trading in New York Monday after rounding out last week with three consecutive losing session that trimmed 4.38% from the company's share price, the biggest downside move in more than three months.
Apple's European suppliers have also been under pressure of late as investors trim growth expectations following a muted response to the iPhone 8's global launch last week and persistent speculation of delivery delays for the iPhone X, which is due in stores in early November.
Dialog Semiconductor Plc (DLGNF) , a U.K-based tech group that derives around three quarters of its revenues from Apple, was marked 1.26% in early London trading and has fallen some 8.6% since Apple's product launch event in Cupertino, California, on Sept. 12. AMS AG (AMSSY) , a small Austrian firm that supplies 3D sensing chips for the next generation iPhones, was marked 4.4% lower Monday, extending its Apple launch declines to around 11%.
Apple's Asia-based supply chain has suffered, as well, with Taiwan's Hon Hai Precision Industry Co., often referred to as Foxconn, falling 10% since the Apple event while domestic rival Pegatron Corp. and South Korea-based Innoteck Co. suffering similar percentage declines.
In fact, TheStreet contributor Robert Moreno wrote Friday that a key key zone of support was broken at the open on Friday which could be a catalyst that accelerates the downside momentum.
"At this point in the last session of the week, the long-term uptrend line on the weekly chart has been broken. A close in the lower range of this candle would form a particularly ominous looking long solid dark candle," Moreno said. "It would suggest that Apple is not done going lower and the momentum and money flow indicators are in agreement."
"The relative strength index and the TRIX indicator, which is a triple exponentially smoothed moving average designed to filter out insignificant price movement, had been in bearish divergence to the stock price prior to the announcement and have continued to track lower," he added. "Overall volume has picked up and money flow continues to deteriorate. This reflects a shift in investor sentiment and possible institutional distribution."
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