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Lukewarm Reception to Apple's AI Launch Impacts Asian Suppliers
Apple Inc.'s recent introduction of new artificial intelligence features failed to impress, resulting in a notable decline in the shares of some of its key Asian suppliers. The unveiling of the Apple Intelligence platform did not present major surprises, leading analysts to maintain a pessimistic outlook on iPhone shipment forecasts for this year. This sentiment dampened the recent stock rallies of Apple and its related component manufacturers.
South Korea’s LG Innotek Co. experienced a significant drop, falling up to 9.5%, marking its steepest decline since September 2022. Meanwhile, China’s Luxshare Precision Industry Co. saw its shares decrease by 4.1%. Bloomberg data indicates that over 70% of these companies' sales are attributed to Apple.
Yang Seung Soo, an analyst at Meritz Securities Co., expressed disappointment over the lack of standout content in Apple’s announcement, suggesting it is unlikely to spur significant growth in iPhone shipments. Following the Worldwide Developers Conference presentation, Apple’s shares decreased by 1.9% on Monday. This decline came despite the stock's nearly 20% rebound from its April lows, driven by a positive earnings report and optimism surrounding its AI plans.
Other Asian suppliers also saw declines, including Japan’s Sharp Corp., which slipped 2.9%. However, not all related stocks followed this trend. Taiwan Semiconductor Manufacturing Co. reported strong sales for May, which helped its shares rise, bucking the general downward movement.
