Apple-linked suppliers traded unevenly across Asia on Tuesday. South Korean component and memory-chip makers, along with Taiwan’s Largan Precision, declined, while some Chinese manufacturers gained. Investors weighed stronger iPhone demand against higher component costs and varied results across the supply chain.
In early trading, LG Innotek fell 4.6%, SK Hynix dropped 3.5% and Samsung Electronics lost 3.3%. Largan Precision declined 4.2%. In China, Goertek rose 2.7% and Luxshare Precision gained 0.6%, while Taiwan Semiconductor Manufacturing Co. was little changed.
Apple’s September-quarter iPhone revenue increased 17.5% year on year to $57.6 billion, supported by demand for the iPhone 18 Pro. Overall revenue also exceeded expectations. But the company forecast a gross margin of 45% to 46% for the December quarter, down from 47.9% previously, citing pressure from rising memory costs. iPad and wearables sales disappointed, and services growth is expected to slow.
Recent supplier results also showed mixed performance. LG Innotek’s third-quarter revenue rose 18.6%, but operating profit fell 53.4% as currency movements squeezed margins. The company purchased raw materials when the won was weaker against the dollar and shipped products after it had strengthened. Revenue in its optical solutions division, which includes camera modules, increased 20.6%.
Largan Precision reported an 11.5% revenue decline and a 27.7% drop in net profit. Its gross margin fell to 42.21%, a 13-year low, amid lower yields on new smartphone camera lenses and higher energy costs.
Samsung Electronics and SK Hynix shares fell despite record quarterly earnings, which were supported by AI-related memory demand and strong sales of high-bandwidth memory and server products. Both stocks had risen in the previous session, potentially creating room for profit-taking.
Chinese suppliers had mixed results. Goertek posted modest increases in nine-month revenue and profit. Luxshare Precision reported year-on-year growth in third-quarter revenue and net profit; its nine-month revenue rose 29%, while attributable net profit increased 13.4%.
Sources: Investing.com News.