Despite strong sales from Apple in the general Asian market, the company's suppliers of screens and micro chips from the region are worried for the long term. Analysts sum up the industry's outlook for the tech titan's tablets and smartphones as 'downbeat.'
These chip producers and screen manufacturers heavily rely on Apple's figures. LG Display, Apple's touchscreen provider, has 20% of its total sales came from purchases made by the American tech company, according to analysis from Bernstein Research. Recently, another chip maker in Asia partnered with Apple. Taiwan Semiconductor Company, the world's largest chip manufacturer, will begin supplying Apple next year.
Both companies' shares increased yesterday due to Apple's announcement of worldwide three-month sales. According to the iPhone maker, it has sold more units than expected, prompting what analysts predict to be an upswing in Asian supply orders.
As long as Apple keeps selling their products and the market bites, analysts believe that Asian supplier firms will rise.
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