With a focus on smaller suppliers, the sensitivity to sales prospects at each new release of Apple smartphones reflects in share price volatility of China, Taiwan or US listings
But while the volatility may reflect overoptimistic sales anticipations during the months preceding a major release, the trend following official releases usually is more significant if, as can be assumed, the suppliers register firm repeat orders over the time period
Although the importance of Apple derived revenue for many suppliers located around the world is a proven strength, successful diversification of the client base of those firms should be recognized as critical, going forward
At supplier level, diversification may be achieved by sheer volume – as for Taiwan Semiconductor – or by advanced manufacturing capacity of complex components – as, to name a few, with ultra-fine conductor maker Zhejiang Tony Electronic or laser welding and laser engraving / marking for Han's Laser
Our theme is purely indicative with end-of-day prices of a small selection of US listed companies. Some Asian suppliers are referenced in our note
