Apple Share Price: As you probably know by now, Apple Inc. (NASDAQ:AAPL) shares hit a 52-week low yesterday. If you have yet to catch up with the news, you can do so by visiting the following article: Apple Inc. (AAPL) is ‘Worse Than What People Were Thinking,’ Says Analyst. While everybody has an opinion on why this trouble is brewing with Apple’s share price, one thing is for sure: it has caused a ripple effect with consumers, investors, and other companies.
When Apple Inc. (NASDAQ:AAPL) stumbles, there is no denying that the company feels the pain. That being said, it is not the only one that has to deal with the fallout.
As you can imagine, this also has an impact on other companies that rely on Apple for so much business. When things are going good, providers in the company’s supply chain, for example, are able to reap the benefits. On the other side of things, when the company takes a downturn these same companies will have to deal with the effects.
According to a recent report by Reuters, this has been the case with LG Display.
On Thursday, shares of LG Display have nose-dived more than four percent. The reason for this is simple: the company is a flat-screen supplier for Apple.
As noted above, when Apple is struggling so do the companies that rely on the tech giant for a large part of their business. LG Display, in this particular case, has been “hit by concerns of weaker demand from the iPhone and iPad maker after disappointing revenue forecast be a chip supplier to the U.S. firm.”
When Apple Inc. (NASDAQ:AAPL) shares fell below $400 for the first time in more than 12 months, LG Display likely realized that trouble was on its way.
Keven Yoo, an analyst at Korea Investment & Securities, added the following in the Reuters piece:
“A warning by Cirrus Logic fueled concerns about sluggish sales of iPhone and iPad and adversely affect shares of LG Display, which generates about 20 percent to 25 percent of its revenue from Apple.”
As you can see, LG Display relies on Apple for just about one quarter of its revenue. If something bad goes down with Apple, there is reason to believe that LG will take a hit as well.
This goes a long way in showing just how much power Apple Inc. (NASDAQ:AAPL) truly has.
Check back here for more updates on Apple Share Price.
DISCLOSURE: I have no positions in any stock mentioned.
For more news stories, visit these pages: