AirPods supplier shares plunge amid rumors of production cuts by Apple

Asian Tech Press (Mar. 29) -- AirPods suppliers shares plunged Tuesday after it was rumored that Apple plans to cut production.

The two Apple supplier, Luxshare Precision Industry Co., Ltd. (002475.SZ) and Goertek Inc. (002241.SZ), make various accessories and components for Apple. And Luxshare Precision is the largest manufacturer of AirPods, followed by GoerTek.

According to the Nikkei newspaper on Monday, Apple plans to cut orders for AirPods headphones, lowering this year's annual production by more than 10 million units, due to forecasted moderate demand and the desire to reduce inventory levels.

Affected by the news, GoerTek shares fell over 8.5% to 33.84 yuan per share on Tuesday, and Luxshare Precision also dropped more than 6% at the same time.

Apple shipped 76.8 million AirPods last year, according to Counterpoint Research, but people familiar with the matter said overall shipments could decline in 2022.

The person in charge of related business at GoerTek responded, "No comment on customers involved, but the company's production is currently normal and no major changes have occurred."

Luxshare said on an investor relations platform that the company maintained stable cooperation with customers on acoustic wearable products, and orders are currently growing as expected, there is no case of reducing orders for 10 million units by the company's largest customer.

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