Apple’s Asia Suppliers Rise on Forecast of Strong Holiday Sales
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Apple Inc.’s suppliers in Asia, including Hon Hai Precision Industry Co. and Wistron Corp., rose after Apple forecast revenue for the quarter ending in December that topped estimates amid strong demand for its 10th anniversary iPhone.
Hon Hai, the main assembler of the iPhone X, rose as much as 1.8 percent in Taipei trading, while Wistron, another Apple assembler, rose as much as 4.3 percent. Quanta Computer Inc., Pegatron Corp. and Genius Electronic Optical Co. also rose.
After concerns about production volumes this year, Apple signaled it’s fixing supply problems with the iPhone X and setting itself up for a better-than-expected holiday period. Supported by resurgent iPad and Mac sales, the 10-year anniversary iPhone will help push revenue to a record high of $84 billion to $87 billion in the quarter ending in late December, Apple said in a statement. Analysts had predicted $84 billion, according to data compiled by Bloomberg.
Apple shares rose about 4 percent in late U.S. trading after the earnings report. The Cupertino, California-based company is the most valuable in the world with a market valuation of more than $850 billion.
Questions & Answers
Q.Which specific Apple suppliers saw their stock rise following Apple's revenue forecast?
Which specific Apple suppliers saw their stock rise following Apple's revenue forecast?
Hon Hai Precision Industry Co., Wistron Corp., Quanta Computer Inc., Pegatron Corp., and Genius Electronic Optical Co. All experienced a rise. Hon Hai rose 1.8% and Wistron rose 4.3% in Taipei trading.
Q.What is the primary reason for Apple's optimistic revenue forecast for the December quarter?
What is the primary reason for Apple's optimistic revenue forecast for the December quarter?
Strong demand for the 10th anniversary iPhone is the main driver. This, combined with resurgent iPad and Mac sales, is expected to push revenue to a record high for the quarter.
Q.What revenue range is Apple forecasting for the quarter ending in December?
What revenue range is Apple forecasting for the quarter ending in December?
Apple is forecasting revenue between $84 billion and $87 billion for the quarter ending in late December. This figure tops the $84 billion that analysts had predicted for the period.
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