European chip stocks tumbled on Thursday after Apple cut its first-quarter revenue guidance citing weaker-than-expected iPhone sales and slowing economic growth in China.
Austrian chipmaker AMS nosedived 19 percent while Swiss firm STMicroelectronics dropped around 7 percent. Both companies are semiconductor suppliers for Apple devices.
Shares of Anglo-German chip supplier Dialog Semiconductors plunged 7 percent at the open in Frankfurt. In October, Apple agreed to buy a portion of Dialog’s business in a $600 million deal.
Other chip stocks including Dutch firm ASM International and Germany-based Siltronic also fell at the open amid pressure in the semiconductor industry. The broader European Stoxx 600 tech index was the worst performing sector in Europe on Thursday, trading down around 2 percent.
The moves in Europe followed losses in Asia’s tech sector among Apple suppliers.
Apple CEO Tim Cook issued a letter to investors Wednesday lowering the iPhone maker’s fiscal first quarter revenue guidance to $84 billion, down from a previous range of $89 billion to $93 billion.
In an interview with CNBC’s Josh Lipton on Wednesday, Cook said trade tensions between the U.S. and China were one factor weighing on the tech giant’s outlook.
Apple shares traded down roughly 7 percent in extended hours on Thursday. Several Apple suppliers have cut their outlook in recent months citing weak demand.
