Apple’s Top Suppliers in Taiwan Weather Worst Month Since June

(Bloomberg) -- Apple Inc.’s key suppliers in Taiwan saw another major sales drop in September, despite the launch of a new iPhone and several Android handsets.

Most Read from Bloomberg

• Israel Latest: IDF in New Strike on Hezbollah Targets in Lebanon

• Your Guide to Understanding the Roots of the Israel-Hamas War

• Israel Latest: Army Says Hamas Officials Dead; Over 600,000 in Gaza Flee South

• US Pushes to Contain Israel-Hamas War, Warns Iran About Escalation

• Xi’s $1 Trillion ‘Project of the Century’ Gets a Reality Check

The world’s biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co., did better than feared, recording a 13.4% drop while the wider group of major assemblers and component makers fell 16.4% to NT$1.24 trillion ($38.7 billion) from a year earlier, according to data compiled by Bloomberg. TSMC has weathered sagging smartphone and laptop chip sales better than others thanks to demand for artificial intelligence accelerators it makes for Nvidia Corp.

Device assemblers Hon Hai Precision Industry Co., Compal Electronics Inc. and Quanta Computer Inc. led declines, though rival Pegatron Corp. managed to eke out growth in September after having the second-worst August in the group. Last month marked the steepest fall since June and extended August’s double-digit decline, leading to an 8.8% slump for the first nine months of the year.

Read more: Nvidia Partner Expects AI Server Sales to Double in 2024

Apple’s iPhone 15 generation went on sale during the month, with upgrades to the entry-level model stirring a positive response. Competitors in China, including Xiaomi Corp., Oppo and Honor Device Co. also added to their lineups. Outside of foldable models that still sell in relatively small number, smartphone makers have struggled to rekindle growth for years and have extended declines that began in 2022.

Most Read from Bloomberg Businessweek

• Wall Street’s Surprising Quest for Ways to Finance Coal Again

• Ad-Free Versions of Facebook and Instagram Have One Audience in Mind: Regulators

• Introducing The Businessweek Show With Max Abelson

• The K-Pop Mogul Behind BTS Is Building the Next BTS

• Rural America Is Losing Nursing Homes, and Small Towns Are Reeling

©2023 Bloomberg L.P.