iPhone Fears Hit Chip Stocks
The waning fortunes of Apple’s top selling product, the iPhone, saw semiconductor stock values plummet by as much as 3.2 percent in weekend trade. More than US$15 billion was wiped off the value of chipmakers amid concerns that slowing iPhone demand will carry through to semiconductors.
None of the 16 chipmakers on S&P’s 500 list escaped the rout, with Skyworks Solutions plunging 7 percent, the most since October..
Analysts predict the industry’s Q1 earnings will fall 7 percent, compared to a 6.5 percent decline expected a week ago, with a full-year profit decline of 9 percent.