Investing.com – Shares of Asian suppliers Apple Inc rose on Friday, tracking gains in the tech giant’s after-hours trading as the company’s quarterly profit came in less than expected and revenue was forecast to rise in the current quarter.
Shares of Apple Inc (NASDAQ:) jumped 6% in extended trading after the company posted smaller-than-expected declines in earnings and revenue for the March quarter. The iPhone maker also said it expects moderate revenue growth in the June quarter.
The tech titan’s more optimistic tone pointed to potentially stronger demand for Apple suppliers.
In Taiwan, shares of the largest suppliers TSMC (TW:) (NYSE:) and Hong Hai Precision Industry Co Ltd (TW:) (Foxconn) shares jumped 1.5% and 2.3%, respectively. The two companies supply Apple with electronic components, and Foxconn also assembles iPhones for the firm.
In South Korea, LG Innotek Co Ltd. Shares of the company (KS:), which produces 3D sensor modules for Apple, rose 4.3%. Apple accounts for roughly 70% of the company’s sales, especially after South Korean conglomerate LG gutted its own smartphone division.
Samsung Electronics Co. Ltd. (KS:), which is Apple’s main competitor but also supplies it with displays and memory chips, rose 0.8%. Memory chip supplier SK Hyniks Inc. (KS:) added 1%, and
In Hong Kong, shares of AAC Technologies (OTC:) Holdings Inc (HK:), which supplies Apple with acoustic components, rose 3.6%.
Most of the aforementioned stocks fell ahead of Apple’s earnings as markets feared the iPhone maker would post a more pronounced sales decline due to increased competition in its core market in China.
remove advertising
.
But while Apple’s iPhone sales fell short of expectations, profits were supported by growth in the company’s services as well as robust sales of accessories.
CEO Tim Cook told Reuters that Apple expects low-single-digit revenue growth in the June quarter, a marked improvement from the four quarters of revenue declines Apple has faced.
However, the company has said little about its plans to integrate artificial intelligence amid widespread adoption of the technology by its competitors. Analysts expect the integration of artificial intelligence to lead to the next wave of iPhone sales.