Asia Stocks live blog: One for the bears? – MarketWatch (blog)

Talk is swirling around Apple’s iPhone 6, with reports saying the new smartphone will start production in East Asia next month and then ship in September.

On Monday, Bloomberg reported the new iPhones, which will be bigger than past iterations, will begin production in July. This, after Raymond James said late last week that the new phone will likely price $100 above iPhones of the current size.

And this morning, the Nikkei cited Chinese media accounts that the new phone’s lead assembler Foxconn will hire some 100,000 new workers to make the device.

And it’s not just about the iPhone 6. Reuters reported last week that July would also mark the start of production for an Apple smartwatch, with Taiwan’s Quanta Computer helping build the gadget.

What does this all mean for the market?

Shares of Foxconn, listed in Hong Kong as FIH Mobile, are down 4.4% at the midday break, even after the company released a profit-outlook update promising January-June earnings “moderately higher” than the year-earlier period.

Likewise, Foxconn’s corporate parent, Hon Hai Precision, is trading 1.1% lower in Taipei. And fellow Taiwanese tech Pegatron, named in other reports as another link in the supply chain for the new iPhone, is down 0.5%.

Also in Taipei, alleged smartwatch maker Quanta is down 1.3% — this, even though the Taiex is slipping by just 0.1%. 

Then again, Quanta is up 4.5% for the month to date, while Hon Hai is up 5.1% for the same period.

Meanwhile, shares of Apple itself shot higher in early U.S. trade Tuesday on the back of the Bloomberg report about the new iPhone’s size, though the stock got caught in a broader market pullback to end the day with a mere 0.1% gain.

Asia Stocks live blog: One for the bears? – MarketWatch (blog)}

Leave a Reply

Your email address will not be published. Required fields are marked *