Plunge. Apple AirPods maker dives after revealing loss of ‘major’ client

GoerTek Inc. plunged its daily limit of 10 per cent after the maker of Apple Inc.’s AirPods disclosed it suspended production of an audio product from “a major overseas customer.”

The Chinese company, which named neither the client nor its product, warned that decision could hit as much as 3.3 billion yuan ($456 million) of revenue in 2022. Goertek, which also supplies Samsung Electronics Co. and Xiaomi Corp., said its relationship with other customers remain normal.

GoerTek’s revelation ignited speculation that Apple may be retooling a vast supply chain centered on China. On Wednesday, rival AAC Technologies Holdings Inc. surged as much as 15 per centin Hong Kong, the most on an intraday basis since March.

Apple and its peers are grappling with faltering demand for electronics worldwide, as consumers cut spending in the face of a potential economic downturn. It expects to produce at least 3 million fewer iPhone 14 handsets than originally anticipated this year, Bloomberg News has reported. The US company is also dealing with unexpected issues across its global supply chain, including a lockdown of its main iPhone production facility in central China.

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