5.7 billion wiped off European tech shares after Apple outlook disappoints

A customer stands beneath an Apple logo at the Apple store in Grand Central station in New York City
Thomson Reuters




LONDON (Reuters) - Top European technology stocks shed nearly $6 billion of market value on Wednesday, with suppliers for Apple the top fallers after the tech giant's revenue forecasts fell short of expectations.

While the worst hit were the handful with 20-70 percent direct exposure, the whole sector suffered as investors cautioned against frothy valuations, with the STOXX Europe 600 tech index trading well above its historical average.


The European technology index lost 5.7 billion dollars of market capitalization, led lower by a www.diymart.vn 6.5 percent slump in Germany's Dialog Semiconductors and a 5.1 percent fall in British-listed ARM Holdings .

Apple orders accounted for around 70-75 percent of Dialog's total revenue, industry experts said, while Apple accounted for 20-25 percent of ARM's processor royalties last year.

While Apple's biggest suppliers, such as Intel and Qualcomm , are American, Apple is a large customer of many smaller European companies.