Shares of Apple Inc (AAPL.O) suppliers rebounded on Tuesday after heavy losses in the previous session as investors remain confident of continued demand for the hot-selling devices of the California-based company.
Two sources in Apple's supply chain said there were no official order cuts from their client, however, one said he would be cautious about actual orders to be placed for the fourth quarter.
There's no official downward revision and we'll still prepare the same amount of materials for Q4 as planned, but we'll also be cautious about actual orders to be placed as the overall economy is slowing, a source with direct knowledge of the matter told Reuters.
Another source said there was no change in orders from Apple for the fourth quarter and their business would not be affected.
By 0212 GMT, touch panel maker TPK Holding Co Ltd (3673.TW) had surged by the daily limit, while touchscreen panel maker Wintek Corp (2384.TW) had jumped 5.7 percent.
Camera module maker Largan Precision Co Ltd (3008.TW) and Hon Hai Precision Industry Co Ltd (2317.TW) posted smaller gains, up 3.3 percent and 1.7 percent, respectively. The main Taiwan share index .TWII was up 3.21 percent.
Market consensus is that the transition between old and new models in Q4-Q1 may affect shipments at Apple suppliers, but the overall picture is still intact, said Bevan Yeh, a senior fund manager of Prudential Financial Securities Investment Trust. The demand for Apple's iPhone and iPad is not falling.
On Monday, Apple suppliers tumbled following an analyst report from JP Morgan out of Hong Kong that said the U.S. company was cutting fourth-quarter sell-in orders for its iPad tablet by 25 percent.
A U.S.-based JP Morgan analyst issued another report later, however, saying he was aware of the supply chain noise and reiterated that he expected Apple's iPad and iPhone build plans and shipment levels to continue to increase going forward.
In general, an implication of an acute supply chain cut could concern investors, but our message to investors is: no need for alarm, JP Morgan analyst Mark Moskowitz said in his report on Monday.