Investing.com — Shares of Apple Inc’s Asian suppliers rose on Friday, following an after-hours rebound at the tech giant as it posted quarterly profits that weren’t as bad as expected and also forecast revenue growth in the current quarter.
Apple Inc (NASDAQ:) rose 6% in extended trading after posting a smaller-than-expected decline in earnings and revenue in the March quarter. The iPhone maker also said it will see mild sales growth in the June quarter.
A more optimistic tone from the tech titan hinted at potentially stronger demand for Apple’s suppliers.
In Taiwan, major supplier stocks include TSMC (TW:) (NYSE:) and Hon Hai Precision Industry Co Ltd (TW:) (Foxconn) rose 1.5% and 2.3% respectively. The two supply Apple with electronic components, while Foxconn also assembles iPhones for the company.
In South Korea, LG Innotek Co Ltd (KS:), which makes 3D sensor modules for Apple, rose 4.3%. Apple accounts for roughly 70% of the company’s revenue, especially after South Korean conglomerate LG scuttled its own smartphone division.
Samsung Electronics Co. Ltd (KS:), a major competitor of Apple, but also equipped with displays and memory chips, rose 0.8%. Supplier of memory chips SK Hynix Inc (KS:) added 1%, while
In Hong Kong, AAC Technologies (OTC:) Holdings Inc (HK:), which supplies Apple with acoustic components, rose 3.6%.
Most of the above-mentioned stocks had fallen ahead of Apple’s earnings as markets feared the iPhone maker would suffer a more pronounced decline in sales due to increased competition in major market China.
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But while Apple’s iPhone sales exceeded expectations, profits were boosted by the strength of its services and steady accessory sales.
CEO Tim Cook told Reuters that Apple expects low-single-digit revenue growth in the June quarter, a marked improvement from the four quarters of revenue declines Apple faced.
Still, the company gave few clues about its plans to integrate artificial intelligence amid widespread adoption of the technology by its rivals. Analysts expect AI integration to drive the next wave of iPhone sales.
