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    Apple Suppliers Hit Hardest as Tech Selloff Goes Global

    Apple Suppliers Hit Hardest as Tech Selloff Goes Global

    In Europe shares in AMS AG, the Swiss-listed supplier of sensors, fell as much as 9 percent, while chipmaker STMicroelectronics NV traded as much as 8 percent lower. The Stoxx 600 Technology index fell as much as 3.6 percent, the biggest decline in nearly a year.

    On Friday, Robert Boroujerdi, global chief investment officer at Goldman Sachs Group Inc., said that low volatility in Facebook Inc., Amazon.com Inc., Apple Inc., Microsoft Corp. and Google parent Alphabet Inc. may be blinding investors to risks such as cyclicality and regulation. Apple’s new iPhone is also said to be lacking the tech to match rivals’ data speed, according to a Bloomberg report Friday.

    “It is really the U.S. selloff that is happening now in Europe,” said Charles Lepetitpas, analyst at Natixis Securities. “I don’t see any specific news.”

    Both AMS and STMicroelectronics — the biggest tech fallers in Europe — supply chips to companies such as Apple and Samsung. AMS also flagged a weaker-than-expected dividend late Friday. Many of the stocks being hit have been on a tear this year: AMS is the biggest riser on the Stoxx Europe 600 in that period, having more than doubled.

    “Some investors are just taking profit,” said Karsten Iltgen, analyst at Bankhaus Lampe KG.

    The European slump was the last leg in a global tech selloff that began Friday in the U.S. In Asia, Taiwanese iPhone manufacturer Hon Hai Precision Industry Co., Ltd, closed 2.9 percent lower. It was the largest single-day decline since last November, according to data compiled by Bloomberg. Hon Hai, better known as Foxconn, said Friday its May sales declined 5.3 percent year-on-year to NT$279.8 billion.

    Taiwan Semiconductor Manufacturing Co, the sole maker of Apple’s A11 chipsets to be used in the upcoming iPhone series, declined as much as 2.4 percent, the biggest drop in more than six months. Samsung Electronics Co fell 1.6 percent, while Tencent Holdings Co. Ltd fell 2.2 percent.

    “Weakening smartphone demands outlook in China contributed to the slump,” said Steven Liu, executive director of China Securities International Financial Holding based in Hong Kong.