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Apple's prospects are strong, but suppliers aren't smiling

Component makers, gadget assemblers grapple with heavy dependence

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iPhones are Apple's main source of income, contributing more than 60% of the company's total revenue.   © Reuters

TAIPEI Apple's earnings once again beat estimates in the quarter just ended. Its profit margin is over 20% and its stock has gained some 30% since the beginning of the year, boosting its market cap to a historic high with billionaire investor Warren Buffett buying up shares in the company.

Shares in several suppliers have risen significantly over the past few months on high expectations for the iPhone 10th anniversary range due later this year. But not all have quite so much reason to smile, partly due to Apple's cost cutting.

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