Summary - Shares of several large Asian companies that supply components and assembly services to Apple Inc fell heavily on Friday after the iPhone maker announced substantial price increases for MacBooks and iPads. The move spurred investor worries that rising semiconductor costs are starting to depress consumer demand and broader technology spending.
Apple's own shares plunged more than 6% in overnight trading, eliminating roughly $250 billion in market value, despite an upbeat, AI-driven outlook from Micron Technology earlier in the week.
Regional selloff centered on memory-chip makers
South Korean memory-chip companies experienced the steepest declines. SK Hynix Inc dropped 9.4% while Samsung Electronics Co Ltd fell 9.2%. Both firms are prominent suppliers of DRAM and NAND memory chips used across Apple devices. The shares extended losses amid reports that the companies are preparing large increases in semiconductor investment.
Component and assembly suppliers under pressure
Camera and assembly-related suppliers also saw notable declines. LG Innotek Co Ltd, identified as Apple's primary supplier of high-end iPhone camera modules, slipped 3.8%. China-based Luxshare Precision Industry Co Ltd, which assembles AirPods, Apple Watches and a growing share of iPhones, fell 9.4%.
Several Japanese suppliers moved lower as well. TDK Corp, a supplier of battery technology for iPhones and other Apple devices, slid 8.2%. Murata Manufacturing Co, known for multilayer ceramic capacitors used throughout Apple hardware, lost 6.9%. Sony Corp, whose image sensors are widely used in iPhone cameras, declined nearly 1%.
Taiwanese suppliers comparatively steady
Taiwan's participants in Apple's supply chain were comparatively resilient. Taiwan Semiconductor Manufacturing (TSMC), identified as Apple's exclusive manufacturer of A-series and M-series processors, traded little changed. Foxconn Technology Co Ltd, Apple's largest iPhone assembler, was broadly flat. LARGAN Precision Co Ltd, the dominant supplier of premium iPhone camera lenses, also showed little change.
Market interpretation
Investors appeared to pivot quickly from the earlier narrative of AI-driven chip demand toward concerns over the inflationary effects of rising memory costs. While Micron's earnings reinforced expectations for robust semiconductor demand, Apple's decision to increase prices for MacBooks and iPads highlighted mounting cost pressures for device makers. That development prompted market participants to re-evaluate suppliers most exposed to Apple's hardware cycle and to the memory market in particular.
Implications for markets - The price adjustments announced by Apple acted as a catalyst for rapid repositioning in equity markets tied to technology hardware and components, with memory producers and component vendors bearing the brunt of the move.
Data points referenced in this report: SK Hynix -9.4%; Samsung Electronics -9.2%; LG Innotek -3.8%; Luxshare Precision Industry -9.4%; TDK -8.2%; Murata Manufacturing -6.9%; Sony - nearly 1% decline; TSMC little changed; Foxconn broadly flat; LARGAN little changed. Apple shares fell more than 6%, reducing market value by roughly $250 billion. Micron Technology provided an upbeat AI-driven outlook earlier in the week.