Iphone 13
Apple.
The stock fell after a report said that Apple is telling suppliers that demand for the iPhone 13 isn't as high as it was a year ago.
The new phone lineup was launched in September, and Apple's warning about weak demand indicates that some consumers have decided not to buy it.
The company was expected to cut its production goal for the next iteration of the device by as much as 10 million units because of a lack of parts, according to a report. Expectations were that the supply would improve next year, which would allow Apple to make up for the lower production. According to the report, Apple is telling vendors that orders may not come to fruition.
In late October, CEO Tim Cook said a global chip shortage was affecting most of Apple's products. He said on the October conference call that supply chain issues cost Apple $6 billion in sales in the fourth quarter.
The stock lost as much as 4.2% when it hit $157.80. It reached a record high of $170.30 in the previous session.
The checks for the iPhone 13 continue to be much stronger than expected, according to a note published Thursday. Even with the chip shortage, it expects Apple to sell more than 40 million phones during the holiday season.
The "underlying iPhone 13 demand story for Cupertino both domestically and in China is well ahead of Street expectations in our opinion," wrote Ives. In China alone, we estimate there are 15 million iPhone 13 upgrades for the December quarter, which is a major source of strength for Apple.
The price target for Apple stock was raised by Wedbush to $200 from $185, and the company is expected to reach a $3 trillion market cap by the year 2022.
The stock gained 25% this year, thanks to a nine-session winning streak that ended on November 24.
Business Insider has an original article.
