Apple's Stock Hit 18-Month Low This Week Amid iPhone 14 Pro Supply Issues

[MacRumors]

Apple's shares fell to an 18-month low this week amid iPhone supply issues and a broader downturn in the stock market. Apple's stock closed at $126.04 on Wednesday to reach its lowest mark since June 2021, and still remains within that territory.

Apple's manufacturing partner Foxconn has faced iPhone production constraints due to COVID-19-related issues over the past few months. Last month, workers protested at Foxconn's main iPhone factory in Zhengzhou, China over poor working conditions stemming from COVID-19 restrictions. While the Chinese government has since started to ease some restrictions, increased spread of the virus has led to labor shortages at Foxconn.

Last month, Apple issued a rare public warning stating that iPhone 14 Pro and iPhone 14 Pro Max shipments would be lower than it previously anticipated due to the restrictions that were in place at Foxconn at the time.

Earlier this week, Taiwanese research firm TrendForce said the capacity utilization rate of Foxconn's factory had yet to rise above 70% since the production issues began. The situation has primarily impacted the iPhone 14 Pro and iPhone 14 Pro Max given stronger demand for those devices, resulting in multi-week shipping delays. The standard iPhone 14 and iPhone 14 Plus models are both in stock on Apple's online store.

Due to the COVID-19-related issues, economic uncertainty, and the weeklong Chinese New Year holiday next month, TrendForce believes that the iPhone production issues will continue into early 2023 and lowered its iPhone shipment forecast for all models to 47 million units in the first quarter of the year, down from 52 million.

Apple briefly achieved a $3 trillion valuation earlier this year, but the company's market cap is now closer to the $2 trillion mark again.

Article Link: Apple's Stock Hit 18-Month Low This Week Amid iPhone 14 Pro Supply Issues

 

[jz0309]

Wall Street at its best, yoyo all the time ...

 

[SnappleRumors]

Was waiting to see if this would be a story.

 

[Zakn]

The problem with Apple shares is not only supply issues. Wall street understands now that they have a demand problem too : you can pick whichever iPhone model you want at Apple stores in France today, so there is not really a supply problem.

The problem is demand for iPhones priced starting from 1000 euros and 1300 euros for the iPhone pro and the luck of innovation in the last models. You can't convince me to update from the 13 to the 14 for the "dynamic island" or buy the 15 for USB C. They need either to innovate or to reduce prices to increase sales.

There is also the problem with the changes to the App store which will impact the Services revenue (first in EU, and later in the US if the legislation is adopted).

So, it is not only a supply issues but also questions about Apple ability to continue growing its revenue.

 

[I7guy]

"What goes up, must come down?"

 

[Danfango]

All stock is crashing. At least AAPL isn't crashing because the CEO is completely coco bananas.

 

[philcourage]

“Increase services revenue. We need people to subscribe to Apple Music. Show the banner everytime they open the app no matter if they only have old iTunes content!”

- Tim Cook

 

[philcourage]

Was waiting to see if this would be a story.

“It’s a show about nothing”.

 

[xmarcuswildx]

Not for nothing…. But isn’t everything basically at 52 week lows off artificial pumps? 🤷🏻‍♂️

 

[philcourage]

Not for nothing…. But isn’t everything basically at 52 week lows off artificial pumps? 🤷🏻‍♂️

Shhh. It’s an Apple site. We only focus on the Apple side of things.

 

[citysnaps]

An excellent time to buy more AAPL.

 

[sw1tcher]

All stock is crashing. At least AAPL isn't crashing because the CEO is completely coco bananas.

No, not all stocks are crashing.

Packaged food (e.g. PG, GIS, CPB), drug/pharma/biotech (e.g. MRK, LLY, GILD), energy (e.g. CVX, XOM, OXY, BP), industrial (e.g. URI, EMR, GWW), and consumer cyclical (e.g. GPC, AZO, TJX) stocks are all up for the year.

Not even the ALL stock (The Allstate Corporation) is crashing. ALL is up for the year as well. 😆

 

[Ed A.]

All stock is crashing. At least AAPL isn't crashing because the CEO is completely coco bananas.

Apple stock is crashing because they’re too dependent on China for manufacturing. They should have seen this problem coming over two years ago and transferred manufacturing to India, Vietnam, or wherever else, but they were too slow to do so.

 

[tomtad]

Seriously just wait for the 15, it’ll be worth it

And Tim Apple diversify your manufacturing! Going all in on China was always going to bite you on the ass at somepoint and now it has

 

[BootsWalking]

Law of large numbers has to eventually catch up to Apple. There's only so many iPhones, iPads, and Macs they can sell.

 

[StuBeck]

Isn't the issues with sales of the Plus causing problems too? A new model being a dud doesn't look great.

 

[Villarrealadrian]

Man I like my iPhone but yesterday I saw the galaxy z fold! It’s amaziiing! I’m starting to feel that my iphone just looks too old and basic

 

[Ed A.]

An excellent time to buy more AAPL.

No it isn’t. I sold 8,950 shares this year, sold my last 1,000 shares about a month and a half ago. My cost basis was $45. I think they’ll have a terrible January quarter and not a good outlook.

 

[ponzicoinbro]

Apple stock is crashing because they’re too dependent on China for manufacturing.

That's only partly true. The pandemic, stay at home culture, pandemic free money and low interest rates contributed to too much money in the stock market. It had to be shaken out once the reality changed. Companies with actual long established and stable business that don't rely on hype have had less correction than meme companies and hype companies.

Do not buy stock dips in any companies or take advice from anyone who says "dollar cost average" unless you are wealthy enough to increase your exposure to volatile markets. These are not comfortable times and there are global security risks.

There's going to be quite interesting events ahead. Holmes and SBF going to jail is nothing compared to some of the other CEO scammers who have been defrauding investors, laundering money in Bahamas/UAE and using troll factories to pump their companies.

 

[sw1tcher]

Apple's Stock Hit 18-Month Low This Week Amid iPhone 14 Pro Supply Issues

So what was the reason for Apple's stock hitting a 52 week low of $129.04 on June 16, 2022, when the iPhone 14 wasn't even out yet? Weaker than anticipated iPhone 13 mini sales? 🤣

Would you believe me if I told you that AAPL hitting an 18 month low this week isn't just due to iPhone 14 Pro supply issues?

 

[SnappleRumors]

An excellent time to buy more AAPL.

Dollar cost average*.

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[Andres Cantu]

I’m glad they finally made an article about this. I remember earlier in the year all the headlines were about how almost all stocks were down and Apple was close to all-time highs. Not even Apple is immune to macro events.

 

[Realityck]

Apple's shares fell to an 18-month low this week amid iPhone supply issues and a broader downturn in the stock market. Apple's stock closed at $126.04 on Wednesday to reach its lowest mark since June 2021, and still remains within that territory.

Apple is not invulnerable to market movements, many companies have lost billions this year.

 

[Zakn]

So what was the reason for Apple's stock hitting a 52 week low of $129.04 on June 16, 2022, when the iPhone 14 wasn't even out yet? Weaker than anticipated iPhone 13 mini sales? 🤣

Would you believe me if I told you that AAPL hitting an 18 month low this week isn't just due to iPhone 14 Pro supply issues?

There is no real supply issues since, as of today, you can just walk in every Apple Store in France and get whatever iPhone model you want in whatever color. The problem with the stock is clearly a demand problem.

 

[DotCom2]

No it isn’t. I sold 8,950 shares this year, sold my last 1,000 shares about a month and a half ago. My cost basis was $45. I think they’ll have a terrible January quarter and not a good outlook.