Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER
Apple Stock Dips on Report It Expects Flat iPhone Production This Year
© Reuters. Apple (AAPL) Stock Dips on Report It Expects Flat iPhone Production This Year
By Senad Karaahmetovic
Apple (NASDAQ:AAPL) intends to keep the iPhone production relatively flat in 2022 as the tech giant, as well as the broader smartphone industry, continue to face headwinds this year.
Apple has reportedly told suppliers to produce around 220 million iPhones this year, almost the same as the number of iPhones assembled last year, according to Bloomberg News.
This compares to the analysts’ expectations of about 240 million units, fueled by the release of the new iPhone in the fall. However, the smartphone industry has been facing challenges since the start of the year, forcing Apple and its peers to reconsider their production targets.
Furthermore, the inflation’s jump to its 40-year high, geopolitical tensions, and supply chain constraints continue to hurt the corporations’ sales in 2022, with some estimating that total smartphone shipments will shrink 2% this year.
Market research firm TrendForce has slashed its full-year production estimates twice over the past few weeks.
Apple has previously warned that supply chain constraints could dent its sales by $4 billion to $8 billion in the current quarter as the coronavirus-induced lockdowns continue to impede the company’s production lines in China.
In addition, the broader tech industry is also expecting a significant slowdown in consumer spending as higher fuel and raw material costs hurt demand.
“This year will be a tale of two halves,” said Linda Sui, a senior director of Strategy Analytics.
“Geopolitical issues, component shortages, price inflation, exchange rate volatility, and Covid disruption will continue to weigh on the smartphone market during the first half of 2022, before the situation eases in the second half,” Sui added.
Apple stock price is down 1.5% in pre-open Thursday.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.