Apple's Suppliers Are Feeling The Heat Amid A Poor iPhone 8 Debut

Apple Inc. AAPL's iPhone 8 debut is off to a rocky start as the phone's features are "lackluster" versus its competitors, according to Bloomberg News' Mark Gurman. While it may be true that many iPhone buyers are holding out a few weeks for the higher-end iPhone X model, the fact is Apple's suppliers are feeling the heat.

Since Apple introduced its new iPhone lineup, shares of Hon Hai Precision Industry Co., also known as Foxconn, has lost 10 percent, Bloomberg noted. Meanwhile, other key members of Apple's supply chain have seen worse declines, including Taiwan's Pegatron Corp. and South Korea's LG Innotek Co., both of which have lost more than 12 percent over the same time period.

Meanwhile, foreign investors are pulling capital out of the Taiwan stock market as iPhone sales so far "disappointed the market," Alan Tseng, Taipei-based vice president at Capital Investment Management told Bloomberg. In fact, the overseas investors pulled out $677 million worth of capital from the Taiwan stock exchange which seems quite notable considering Taiwan's equity market as a whole is worth just $1.1 trillion.

"The retreat of Apple suppliers has pulled down the benchmark index and could drag the index even lower in the coming month," Tseng added.

Some Wall Street analysts are also expressing similar views, including Rosenblatt Securities' Jun Zhang who argued in a research report that iPhone 8 pre-orders are "substantially lower" compared to prior models.

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