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By Helen Reid
LONDON May 3 Shares of European suppliers of
microchips, sensors and circuitry to Apple fell on
Wednesday after the smartphone company's much-awaited iPhone
sales missed expectations in the second quarter.
Suppliers rely on strong iPhone sales for part of their
profits, and in some cases Apple's announcement on Tuesday
reawakened concerns about excessive exposure to Apple.
Shares in Dialog Semiconductor, which provides
power management systems for Apple, fell 3 percent, among the
top European fallers on the day.
The company has been in investors' focus since mid-April
when a research note from German broker Bankhaus Lampe suggested
Apple could be developing the capacity to bring its power
management components in-house.
That report knocked as much as a quarter off of Dialog's
market value on the day. The company gets nearly 75 percent of
its revenue from Apple, according to Morgan Stanley estimates.
Imagination Technologies, a British designer of
graphical processing units used in smartphones, was down 0.5
percent. In April it said Apple, its largest customer, would
stop using its technology within 15 to 24 months, causing its
stock to lose nearly two thirds of its value in a single day.
Swiss company AMS, the maker of optical sensors for
iPhones, dropped 2.1 percent and Italy's STMicro, which
provides the phone's accelerometers, gyroscopes and motion
sensors, fell 1.7 percent.
Shares in ASML, Europe's largest supplier to
computer chip makers, fell 0.6 percent. The Netherlands-listed
company is lower down the Apple supply chain than Dialog and
STMicro, supplying to Taiwan Semiconductor Manufacturing Company
which in turn serves Apple.
Apple said on Tuesday it sold 50.76 million iPhones in the
quarter ended April 1, down from 51.19 million a year earlier,
indicating that customers may have held back purchases in
anticipation of its 10th anniversary edition..
Analysts on average had estimated iPhone sales of 52.27
million, according to financial data and analytics firm FactSet.
(Reporting by Helen Reid, Editing by Vikram Subhedar and Susan