Share Price of IQE Declines After Supplier of Apple Dismisses Report Claims of ShadowFall

Photo by Aaron Yoo/Flickr

A small Welsh company that is supplying technology to the iPhones of Apple called IQE has dismissed the claims made by a short seller that the company is misrepresenting profits.

On Monday morning, in an update to the market, IQE said that a report that was published by ShadowFall Capital and Research last Friday in which the accusations were made, are “without merit and provide a misleading analysis of the company’s financial position.”

The shares in the Aim-listed company have become one of those that are most shorted, with more than 10 percent of the shares of the company currently held as a short interest.

Last year, the share price of IQE increased by more than 300 percent after the company was linked with Apple. It is understood to be the supplier for the components for the 3D camera sensors of the iPhone X.

On Monday morning, the shares of IQE dropped by as much as 14 percent lower. However, the company was able to pare that loss to trade around three percent lower by mid-morning.