Business World

Sunday 20 January 2019

Apple's first revenue warning in nearly 12 years shakes European shares as chipmakers tumble

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Independent.ie Business Desk

Independent.ie Business Desk

Apple's first revenue warning in nearly 12 years sent European shares sliding on Thursday with the tech sector particularly badly bruised as chipmakers which supply to the iPhone maker fell sharply.

The pan-European STOXX 600 fell 0.7pc as Europe joined a selloff in Asia with the Apple warning compounding fears of slowing global growth.

Apple's Frankfurt-listed shares fell 8.9pc after the tech giant cut its revenue forecast, blaming weaker iPhone sales in China, whose economy has been hit by an ongoing trade war with the US.

Chipmakers who supply parts to Apple were the worst-hit. Shares in AMS, which provides the facial recognition sensors used in the latest iPhones, fell 19.4pc to the bottom of the STOXX.

Dialog Semiconductor tumbled 7.8pc, while Infineon, ASML, ASM International , Logitech, and STMicroelectronics fell 3.4 to 5.9pc.

The tech sector was the worst-performing, down 2.4pc while only telecoms stayed in the black.

Luxury goods shares, which are also highly sensitive to signs of slowing demand in China, joined the selloff.

LVMH, Kering, Burberry, and Swatch were down 2.7 to 3.8pc, among the biggest fallers.

Among rare gainers, Next shares topped the STOXX with a 5.9pc gain after the clothing retailer reported a rise in sales in the run-up to Christmas in line with its own expectations.

Peer Marks & Spencer also gained 3.3pc.

Reuters

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