During the first 40 minutes of Apple’s presentation at the opening of WWDC 2024, the company’s shares continued to lose value; they ultimately ended the trading session at a level below the initial level by 1.91%. Investors were not impressed by the news about Apple’s plans to introduce artificial intelligence, which became public. Moreover, stock prices of Apple suppliers fell much more seriously in trading after WWDC 2024.
Shares of South Korea’s LG Innotek fell 9.5%, the most since September 2022, while China’s Luxshare, a contract manufacturer of Apple electronic devices, saw its share price decline by 4.1%. The revenue of both companies is more than 70% dependent on Apple, as Bloomberg clarifies. According to analysts at Meritz Securities, Apple’s software innovations failed to sufficiently impress investors, and sales volumes of the new generation iPhone are unlikely to significantly exceed its predecessors.
Impacts on Suppliers and Future Projections
Apple’s announcements included updates for its OS, a package of AI-based tools named Apple Intelligence (which is already jokingly called “Apple intelligence”), an updated Siri with AI functions, and the integration of ChatGPT. Despite these introductions, investors remained cautious. Before falling 1.91% following yesterday’s presentation, Apple shares had managed to rise from their April lows by almost 20%, as investors received positive signals at the quarterly earnings conference and also harbored hope for the best in light of the developer conference being prepared at that time WWDC 2024.
However, not all Apple partners experienced a decline in stock prices, notes NIX Solutions. While Sharp shares fell 2.9%, positive statistics for May continue to push TSMC shares higher. We’ll keep you updated as more developments unfold in the aftermath of Apple’s announcements.
Overall, the market response to Apple’s WWDC 2024 presentation highlights a cautious outlook from investors, reflecting concerns about the impact and appeal of the company’s latest innovations.