From Reuters’ “Some Apple, Tesla suppliers halt production in China amid power pinch” posted Monday:
Several Apple Inc. and Tesla Inc. suppliers have suspended production at some Chinese factories for a number of days to comply with tighter energy consumption policies, putting supply chains at risk in the peak season for electronics goods…
The development comes as tight coal supplies in China and toughening emissions standards have triggered a contraction in heavy industry in several regions, dragging on the country’s economic growth rate, analysts have said.
Apple supplier Unimicron Technology Corp. late on Sunday said three of its China subsidiaries stopped production from midday on Sept. 26 until midnight on Sept. 30 to “comply with the local governments’ electricity limiting policy”.
The Taiwanese maker of printed circuit boards said it did not expect significant impact as other plants would make up production.
Eson Precision Ind Co Ltd, an affiliate of Taiwan’s Hon Hai Precision Industry Co Ltd (Foxconn) in a statement said it suspended production from Sunday until Friday at facilities in the Chinese city of Kunshan.
Concraft Holding Co Ltd, a supplier of speaker components for Apple’s iPhone and which owns manufacturing plants in Suzhou city, said it would suspend production for five days until noon on Thursday and use inventory to meet demand.
Chipmakers United Microelectronics Corp and Taiwan Semiconductor Manufacturing Co Ltd told Reuters there was no impact at their China plants…
Foxconn, a major Apple supplier, declined to comment.
My take: Just a hiccup so far. Worth watching.
Hopefully, AAPL will test the day’s low before the day is out.
“Hopefully, AAPL will test the day’s low before the day is out.”
Hopefully from your POV, but not mine. AAPL needs to shake off these doubts or see its valuation stagnate – or even drop.
You keep pointng out the reality that stock value is what investors as a whole think it is. Chip away at that faith in Apple enough, and we could see a major contraction.
Yes, in the long run that could benefit long term stockholders. But only if the government doesn’t mess with buybacks….
Thank you for the compliment, but I don’t have that much influence on the market.
Good one! Likewise!
Just sharing my different POV….