While Apple Inc’s Taiwanese suppliers yesterday mourned Steve Jobs’ death, they were also digesting the latest news and its impact on the market. Share prices closed mixed yesterday after falling on Wednesday owing to disappointment over the iPhone 4S launch.
Analysts said the selling yesterday was triggered by worries about Apple losing its creative drive without Jobs, as well as fears over its business continuity.
There were also concerns that Apple would depart from Jobs’ strategies and engage in price competition to woo consumers, a move that could affect suppliers’ profitability.
Taiwanese firms have to strengthen their synergy and brainstorm for the next “IT” thing after the departure of Jobs, said Chris Hung (洪春暉), deputy director of the Market Intelligence & Consulting Institute (產業情報研究所).
The Taiwanese supply chain relied much on Apple’s innovations for business growth in the past and it now faces an uncertain future if makers fail to come up with their own innovations, Hung said.
The death of Jobs, who created a paradigm shift in the PC market with the introduction of the iPod, iPhone and iPad, could mean a slowdown of fresh ideas in the tech industry and Taiwanese firms should join forces to brainstorm for the next move, he said.
Hon Hai Precision Industry Co (鴻海) chairman Terry Gou (郭台銘) praised Jobs as a true hero who made the world a better place.
“The world has lost a true hero and I have lost a friend whose dedication to his company, his customers and our industry is reflected in the fact that he continued to work while dealing with such a devastating illness,” Gou said in a statement.
Shares of Hon Hai, which assembles iPads and iPhones, rose 3.55 percent to NT$67.60 yesterday after declining 1.89 percent on Wednesday. Another system assembler, Pegatron Corp (和碩), also saw its shares surge 4.03 percent to NT$28.40 following a fall of 3.7 percent the previous day.
Pegatron said Apple’s supply chain would remain unchanged over the next few years.
“I think the supply chain will remain stable in the following two or three years,” Pegatron chief financial officer Charles Lin (林秋炭) said by telephone. “Jobs’ health problems had been a long-term issue, and Apple would have been well-prepared for the worst.”
Quanta Computer Inc (廣達), which makes Apple’s Macbooks, said it does not expect orders to be affected by Jobs’ death. Its shares rose 2.05 percent to NT$59.70.
Shares of case makers Foxconn Technology Co (鴻準) and Catcher Technology Co (可成) advanced 2.79 percent and 3.51 percent to NT$99.50 and NT$177 respectively.
Touch-panel makers Wintek Corp (勝華) and Chimei Innolux Corp (奇美電) saw their shares rise 6.99 percent and 1.21 percent to NT$24.50 and NT$12.55 respectively, but TPK Holding Co’s (宸鴻) fell 2.17 percent to NT$542.
Camera-lens makers Largan Precision Co (大立光) slumped 2.15 percent to NT$638 and Genius Electronic Optical Co (玉晶光) dived 4.82 percent to NT$197.50. Connector maker Cheng Uei Precision Industry Co (正崴) also closed down 2.22 percent to NT$61.60 and battery pack supplier Simplo Technology Co (新普) fell 3.32 percent to NT$174.50.
Council for Economic Planning and Development Minister Christina Liu (劉憶如) said the effect of Jobs’ death on the local market was expected to be limited and any impact on share prices was likely to be short-lived.
Additional reporting by Lisa Wang and CNA
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