Apple's New AI Feature Meets Lukewarm Response, Affecting Asian Suppliers

TapTechNews June 11 - According to Bloomberg, the highly anticipated new AI feature of Apple Inc. received a lukewarm response, causing the stock prices of some of its key Asian core suppliers to drop accordingly.

Analysts said that the released AppleIntelligence platform did not bring much surprise and could not reverse the expected decline in iPhone shipments this year, which poured cold water on the recent stock market rebound of Apple and its related component manufacturers.

The stock price of South Korea's LG Innotek once plummeted 9.5%, the largest decline since September 2022. The stock price of China's Luxshare Precision Industry once fell 4.1%. Data compiled by Bloomberg showed that more than 70% of the sales of these two companies came from Apple.

Yang Seung Soo, an analyst at Meritz Securities, wrote in a report: It is disappointing that there is no killer feature in the release. He added that iPhone shipments are unlikely to rise unexpectedly.

Apple released an operating system update and a new cooperative relationship with OpenAI, the creator of ChatGPT, at its annual Worldwide Developers Conference, but after the conference, its share price fell 1.9%, and its market capitalization evaporated by $58 billion (TapTechNews note: currently about 420.885 billion yuan RMB) overnight. The positive earnings performance last month and expectations for its AI strategy had previously led Apple's share price to rebound by nearly 20% from the low in April.

In Asia, Sharp Corporation in Japan also followed the decline on Tuesday, and its share price fell 2.9%. However, some related stocks rose against the trend, such as chip manufacturer TSMC, whose share price rose after announcing strong May sales performance.