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Chinese Chip Report Keeps Spooking Techs; Lenovo, Apple Fall Midday

Published 10/05/2018, 12:05 PM
© Reuters. Lenovo sank on concerns buyers will stay away from Chinese tech.

Investing.com - PC maker Lenovo fell sharply in midday trading as investors worried that a report about Chinese spying chips being planted in tech company systems would dent demand for Chinese tech products.

Bloomberg reported on Thursday that tiny spy chips from China had infiltrated the supply chains of U.S. companies, including Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN).

Both Apple and Amazon have denied the report.

But that led to concerns that consumer and businesses would avoid Chinese technology until there was more visibility on the issue.

Lenovo (OTC:LNVGF) tumbled about 10% at 12:05 PM ET (16:05 GMT), while Chinese telecom equipment company ZTE (OTC:ZTCOY) slumped 10% as well.

Apple fell about 1.5%, while Amazon was down about 1.6%.

The S&P Information Technology sector index was the worst-performing of the major sectors, slipping about 1.6%.

A big drag on the index was laser manufacturer IPG Photonics (NASDAQ:IPGP), which plunged about 12% after the company cut third-quarter revenue guidance citing tariffs and trade battles.

Latest comments

I guess I will avoid Lenovo products. I was considering their Thinkpad laptops but I read a lot of legit news that China practices corporate espionage and theft of trade secrets. That's really disturbing.
I would not be surprised if there was, but then discovered and removed already, even if there was, apple would want to keep the under the cover in fear of loosing the Chinese market
....I've had a few devices acting weird. One of them were made by ZTE and the other Lenovo Win 10
there is probably no spying. just part of trade war agains Made in China 2025 iniciative...
if US minimum wage workers are less incompetent and more efficient, we wouldn't need to depend that much on foreign products.
Americans are in general too trusting and too naive, if we didn’t let the Chinese join WTO, we wouldn’t have this problem today
hey, no reason for panic... USA as been infiltrating everything since a very long time before already. World goes on and share price sooner or later too
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