Apple Inc’s (NASDAQ:AAPL) pricey iPhone X didn’t move as well as expected, and the company appears to be poised to offer up some more budget-friendly options when new models are rolled out later this year as a result. In the meantime, one asset manager is taking a cautious approach when it comes to the tech giant’s key suppliers.
Bloomberg shares the asset manager’s take on the current market for Apple iPhones.
After doing well out of Apple Inc. suppliers for several years, a top fund manager says it’s time to take money off the table.
Geoffrey Wong, head of emerging markets and Asia Pacific equities at UBS Asset Management, has reduced his holdings of the suppliers as he doubts consumer demand for high-end mobile phones will keep rising. Wong’s now sold out of Largan Precision Co., a stock which he held since at least 2011. The handset lens maker’s shares soared 610 percent in Taipei in the six years through 2017. This year, they’re down 14 percent.
The iPhone X’s eyebrow-raising $1,000 price tag didn’t lead to a herd of consumers rushing out to upgrade their phones last year. For Wong and his team, which have roughly $30 billion in assets under management, that’s a sign that’s akin to a caution flag suddenly popping up on the racetrack.
“We are a bit more cautious,” he said. “Have we reached a price point where consumers are fighting back and saying I’m not going to pay $1,000 for a phone?”
Apple Inc. shares were trading at $175.68 per share on Monday morning, up $0.95 (+0.54%). Year-to-date, AAPL has gained 4.23%, versus a 0.39% rise in the benchmark S&P 500 index during the same period.