Apple’s China suppliers rally as CEO Cook appears in Beijing

Shares of Apple Inc's (NASDAQ:AAPL ) suppliers in China rose sharply on Monday after CEO Tim Cook appeared at a conference in Beijing and spoke positively about the country. 

Shares of AAC Technologies (OTC:AACAY ) Holdings Inc (HK:2018 ), Sunny Optical (OTC:SNPTF ) Technology Group Co Ltd (HK:2382 ), BYD (SZ:002594 ) Electronic International Co Ltd (HK:0285 ) and Q Technology Group Co Ltd (HK:1478 ) surged between 2.4% and 7% in Hong Kong trade, with AAC- which supplies audio equipment to the firm- up the most.

Cook appeared at the China International Supply Chain Expo in Beijing, and said that Apple could not do what it had done without China, Bloomberg reported citing local media.

China is a key market for Apple, and is also a major part of the company’s supply chain, with a bulk of its devices being assembled in the country. 

Cook’s appearance in China comes as Apple grapples with sluggish iPhone sales in the country, with its latest line of devices seeing only middling demand. Heightened competition from local players, including Huawei, as well as increased government scrutiny against the company, have also weighed on sales.

China is also grappling with a pronounced decline in consumer spending, which has steadily chipped away at Apple’s sales in recent years. Still, the Cupertino-based tech giant beat expectations with its September quarter earnings. 

Apple’s introduction of artificial intelligence features in its flagship devices have also hit a snag in China, amid U.S. restrictions on exports of the technology to China. Reports earlier this year said the company was seeking a local partner for AI features in its devices.

Source: Investing.com