Apple slides as Taiwanese report raises fears about iPhone X
Apple (AAPL) shares are weaker as U.S. investors return from the long holiday weekend after a Taiwanese newspaper report said the tech giant is trimming its first-quarter sales forecast, according to Bloomberg.
Adding to the caution are analysts following suit, reportedly due to worries about demand for the high-end iPhone X.
ANALYSTS, APPLE SAID TO TRIM FORECASTS
Taiwanese newspaper Economic Daily News quoted unidentified supply chain officials as having said that Apple is lowering its first-quarter iPhone sales forecast to 30 million units from 50 million, according to Bloomberg.
It also said Hon Hai Precision Industry Co.’s main iPhone X manufacturing hub in Zhengzhou, China, stopped recruiting workers. The company also known as Foxconn is the sole iPhone X assembler, and also makes the handsets in Shenzhen and Chengdu.
An Apple representative declined to comment on production decisions, the report noted.
Additionally, Bloomberg noted that analysts at New York-based JL Warren Capital and China’s Sinolink Securities have each lowered iPhone X shipment projections for the first quarter of next year.
Apple has been counting on a redesigned 10th anniversary iPhone to boost shipments as its market value advances toward $1 trillion. The Cupertino, California-based company is facing new challenges from Samsung Electronics Co., which is quickly recovering from the Galaxy Note 7’s recall after fires. In the meantime, Chinese brands such as Huawei, Oppo and Xiaomi are also luring away potential customers in China and other emerging markets such as India.
SUPPLIERS TO WATCH
Suppliers to Apple that may be volatile following Bloomberg’s cautious report regarding signs of slack iPhone X demand include Skyworks (SWKS), Cirrus Logic (CRUS), Broadcom (AVGO), Qorvo (QRVO), Qualcomm (QCOM), STMicroelectronics (STM), Analog Devices (ADI), Knowles (KN) and Micron (MU).
In pre-market trading, Apple shares are down $4.73, or 2.7%, to $170.28.
To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.