As of the time of writing, AAPL stock was down 1.7% in pre-trading following the company’s announcement that Q2 iPhone sales had missed expectations. Sales were down 1% year-on-year, though a higher average selling price meant that iPhone revenues were up by the same percentage.

The share price of Apple suppliers was also hit when markets opened in Europe …

Reuters reports that five European suppliers saw their share price fall on the news.

Shares in Dialog Semiconductor, which provides power management systems for Apple, fell 3 percent, among the top European fallers on the day […] Imagination Technologies, a British designer of graphical processing units used in smartphones, was down 0.5 percent […]

Swiss company AMS, the maker of optical sensors for iPhones, dropped 2.1 percent and Italy’s STMicro, which provides the phone’s accelerometers, gyroscopes and motion sensors, fell 1.7 percent.

Shares in ASML, Europe’s largest supplier to computer chip makers, fell 0.6 percent. The Netherlands-listed company is lower down the Apple supply chain than Dialog and STMicro, supplying to Taiwan Semiconductor Manufacturing Company which in turn serves Apple.

Imagination and Dialog had already been hit by Apple’s plans to shift to in-house design for its iPhone GPUs and power-management components respectively. Dialog is particularly vulnerable, relying on Apple for 74% of its revenue.

Tim Cook blamed the slight fall in iPhone sales on customers waiting for the iPhone 8 – though he didn’t quite use that wording.

We’re seeing what we believe to be a pause in purchases of iPhone, which we believe is due to the earlier and much more frequent reports about future iPhones. That part is clearly going on. We are saying that in full transparency.

It had been expected that the iPhone would maintain the growth restarted in Q1 after three straight quarters of decline.


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