China's Goertek shares decline when a foreign client suspends an order

Goertek Inc.'s stock dropped on Wednesday after the China-based supplier for businesses including Apple and Meta Platforms disclosed that an unnamed foreign client had requested that assembly work for a smart acoustic product be suspended.

Without naming the client or the product, Goertek announced late on Tuesday that it had received the notice from a "large overseas client". It was estimated that the suspension will reduce revenue by up to 3.3 billion yuan ($455.05 million).

When Goertek shares dropped to their lowest level, trading was suspended in compliance with exchange regulations.

A research analyst for TF Securities named Ming-Chi Kuo suggested on Twitter that Apple's AirPods Pro 2 might be the subject of the issue. He asserted that the production halt at Goertek was more likely the result of production problems than of problems with demand.

Requests for comment from Apple and Goertek, whose clients also include Samsung and Microsoft, were not immediately returned.