Apple’s (AAPL) surprise sales warning late Wednesday is reverberating throughout the technology sector as its legion of suppliers go down with the ship.
With more than 200 companies participating in the manufacture of Apple products, the fallout spreads across nearly every sector of the tech-heavy Nasdaq Composite.
While most vendors are located in China, many trade on the NYSE resulting in heavy losses for Wall Street’s major market indices.
Intel (INTC) and Qualcomm (QCOM), both of which supply chips to iPhones, iPads and the Apple Watch are both lower by more than 2%. Glu Mobile (GLUU), a major provider of iOS apps and mobile games is also more than 2% lower in premarket, while Analog Devices (ADI), which provides the capacitive touchscreen controllers for iPhones and the Apple Watch, is down 3%.
But these losses pale in comparison to suppliers who depend on Apple for a majority of their profits. These include Switzerland’s STMicroelectronics (STM), which provides a gyroscope and accelerometer to Apple, is trading more than 9% lower and is expected to open the regular session at its lowest level in almost two years. Lumentum Holdings (LITE) is down almost 9% from Wednesday’s close, and Cirrus Logic (CRUS) is lower by 7% in premarket trade.