Shares in Apple supplier Goertek tumble after client suspends order

HONG KONG :Shares in Goertek Inc tumbled on Wednesday after the China-based supplier for companies such as Apple and Meta Platforms said an unidentified overseas client had asked it to suspend assembly work for a smart acoustic product.

Goertek said late on Tuesday it had received the notice from a "major overseas client", without disclosing the identity of the customer or product. The suspension would impact up to 3.3 billion yuan ($455.05 million) in revenue, equivalent to about 4.2 per cent of the company's total revenue in 2021, it said.

Shares in Goertek fell by their maximum, triggering a trading suspension in accordance with exchange rules.

Ming-Chi Kuo, an Apple analyst at research firm TF Securities, said on Twitter that, according to his checks, the product involved could be Apple's AirPods Pro 2. "Goertek's suspension of production is more likely due to production issues rather than demand issues," he said.

Apple and Goertek, whose clients also include Samsung and Microsoft, did not immediately reply to requests for comment.

Goertek rivals Luxshare and AAC Technologies jumped as high as 4.6 per cent and 14.6 per cent, respectively, before paring gains. The two companies were up about 0.5 per cent and 5 per cent, respectively, near the end of the morning session.

($1 = 7.2520 Chinese yuan renminbi)