Monday’s selloff in the U.S., which saw the Dow tumble by 600 points, continued in Asia Tuesday. The original spark for the rout was Apple, which fell 5% after a key supplier of its facial recognition technology cut its outlook, pointing to weaker-than-expected iPhone demand.
So it was not very surprising to see other Apple suppliers take a hit. Japanese parts manufacturers TDK and Taiyo Yuden fell by around 6% and 7% respectively. Hon Hai Precision, better known as Foxconn, was down 2.3%. As noted by Bloomberg, Apple can make up for volume drops by raising prices, but its suppliers live on volume.
