APPLE (APPL) Share Price Drops With iPhone 14 Production Forecasts
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Summary:
- Apple's ambitions to increase iPhone production are off the table.
- Apple stockholders may be more wary of this news amidst the hawkish Fed.
Apple decreases their production forecast for iPhone 14
As it had anticipated greater demand for the newest iPhone 14 models, Apple had instructed its suppliers to get ready for expanded production. Bloomberg was told by insiders that some of the demand for Apple's entry-level iPhone 14 devices never materialized.
According to a report, Apple's ambitions to increase iPhone production are off the table. After a dismal iPhone report, Apple's (AAPL) stock is off its day low but is still down more than 2.5%.
According to the Bloomberg article, plans to increase manufacturing are no longer viable since iPhone demand is not as high as some investors may have thought. The stock's decrease creates an intriguing market dynamic and coincides with a bond and stock market boom, both of which are taking place without Apple.
Apple is anticipated to reduce its annual phone output by around 6 million units. In the second half of this year, the business would create about 90 million units of its newest models, which is almost the same amount of new iPhones it produced during the same period last year.
The decrease in iPhone production appears to be the result of lower-than-expected demand for Apple's entry-level iPhone 14 models and higher-than-expected demand for the iPhone 14 Pro/Max models.
While the news that Apple is asking its suppliers to create 90 million units of its new models is receiving a strong response from investors today, it is important for them to bear this in mind. Therefore, even though the company had lately anticipated a boost in demand that didn't materialize, what the company had initially anticipated a little over a month ago remains unchanged. Apple stockholders may be more wary of this news while the Federal Reserve keeps raising interest rates quickly, and investors are concerned that the Fed's action could ultimately push the economy into a recession.
APPL Price Chart
Sources: finance.yahoo.com, fool.com, thestreet.com
