Asian suppliers of Apple Inc. (NASDAQ) experienced significant gains on Thursday. This followed notable increases in Apple’s stock price earlier in the week. The company unveiled a range of new artificial intelligence (AI) features for its flagship devices. The AI innovations in the iPhone and other products sparked a rally among Asian tech suppliers. This demonstrates the interconnected nature of the technology supply chain and the global impact of Apple’s advancements.
Apple’s stock surged nearly 10% this week, briefly surpassing Microsoft (NASDAQ) as the world’s most valuable company. This increase came as investors responded positively to Apple’s developer conference held earlier in the week.
Analysts believe that the new AI features will help spark a sales rebound for Apple, particularly for the iPhone, which has experienced slower sales in recent quarters. Increased sales for Apple are beneficial for its Asian suppliers, which saw rallies this week.
South Korean memory chip makers Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660) rose 2.4% and 3.7%, respectively. Samsung SDI (KS:006400), a supplier of batteries to Apple, added 0.5%.
In Taiwan, TSMC (TW:2330) (NYSE), the world’s largest contract chipmaker and a major Apple supplier, rose 2%. Hon Hai Precision Industry Co Ltd (TW:2317) (Foxconn), which assembles iPhones and other devices for Apple, added 0.4%. Both stocks recorded strong gains this week.
In China, AAC Technologies (OTC) Holdings Inc (HK:2018), which manufactures acoustic components for Apple, rose 2%. BYD Co (HK:1211), which also supplies battery technology to Apple, rallied nearly 8%.
Investors welcomed Apple’s AI plans, betting that the introduction of new features like enhanced voice command functionality and advanced photo editing capabilities would boost iPhone sales. Given that the bulk of these new AI features are compatible only with newer iPhone models, their introduction could potentially spark a new upgrade cycle among customers.
AI is also expected to enhance Apple’s software services, which have remained robust despite slower device sales. This combination of innovative hardware and strong software services is anticipated to support Apple’s growth in the coming quarters.
Overall, Apple’s AI advancements have not only positively impacted its own stock but also provided a boost to its suppliers across Asia. This reflects the interconnected nature of the technology supply chain and the ripple effects of major product announcements.
Skilled content writer with one year of experience creating engaging and informative content for various platforms. Demonstrated ability to thoroughly research, write, and edit compelling content that attracts attention, fosters engagement, and achieves marketing objectives. Passionate about leveraging the power of words to connect with audiences and make a positive impact.