Interflex shares on rollercoaster ride over Apple’s ‘frozen’ iPhone X
[THE INVESTOR] Korean parts supplier Interflex’s share price has been on a rollercoaster ride over the past week amid its key client Apple’s ongoing probe into the so-called “frozen” iPhone X whose OLED screen acts up in cold weather.
Apple has reportedly been carrying out an intensive investigation into the iPhone X screen that sometimes becomes unresponsive or inaccurate in cold weather.
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Interflex, which supplies rigid flexible printed circuit board that connects chips with each parts such as the display screen, said earlier this week it has suspended production to join the probe.
Following the announcement, the company’s stock price plunged immediately.
Until last week, the price was surging more than 25 percent over the past two months as the company is cited as one of the key beneficiaries of the new iPhone launch. The firm is supplying almost 45 percent of the total RFPCBs for the iPhone X. But the high-flying price fell almost 30 percent from 68,000 won (US$63) late last month to 45,200 won this week.
On Dec. 5, the price slightly recovered to end at 48,500 won, up 7 percent from a day before, largely due to some analyst reports that the ongoing probe would not have a serious impact on the company’s overall earnings this year.
“Some defects have reportedly been found in the module production, not the final products of Interflex,” said Kim Woon-ho, an analyst at IBK Investment & Securities. “If the issue is resolved within the week as Interflex predicts, the ongoing probe would not affect its earnings target of some 300 billion won in the fourth quarter. But if the issue is prolonged, a slight decrease in the earnings seems unavoidable. But still it seems unnecessary for me to lower the earnings target for now.”
Interflex said it plans to soon resume production and will reveal its plans through a public disclosure.
By Lee Ji-yoon (firstname.lastname@example.org)