Apple’s stock price plummeted by nearly 5% following the investment bank’s downgrade of the investment grade, the stock prices of related Asian companies that supply Apple parts are also plummeting.
As of 12 pm on the 30th, Nidec and Alps Alpine were down 4.89% and 3.79%, respectively, in the Tokyo Stock Exchange.
In Taiwan, TSMC fell 2.41% and Lagann Precision fell 4.39%.
Korea is doing relatively well. In the Korean stock market, Samsung SDI fell by 2.83%, but Samsung Electronics and SK Hynix succeeded in reversing their gains.
Earlier, on the 29th (local time) in the New York Stock Exchange, Apple fell 4.91% from the previous trading day to $142.48.
This is because US investment bank Bank of America (BOA) downgraded Apple’s investment rating, saying that demand for iPhones is declining. On the same day, the BOA released a report and downgraded Apple’s investment rating from Buy to Neutral.
In its report, the BOA said the reason for the downgrade was that “not only is demand for the iPhone slowing, but Apple’s net profit will also drop significantly due to a stronger dollar.”