What’s The Outlook Like For IPhone Suppliers?

Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has declined by about 25% over 2022, outperforming Apple stock which was down 29%.

While the decline over the past year was largely due to rising interest rates and a broader sell-off in tech stocks, Apple’s iPhone supply chain is also seeing some disruption. While China has eased Covid-19-related restrictions, cases have surged in the country in recent weeks and this is likely to temporarily impact production. Moreover, there have also been protests at Apple contract manufacturer Foxconn’s factory in Zhengzhou which produces a majority of the iPhone 14 Pro and Pro Max devices. This is likely to have weighed on the availability of the premium iPhones – which are apparently seeing stronger demand versus the base iPhone 14 – through the holidays. This is likely to temporarily weigh on the performance of Apple suppliers as well.