Apple Inc (NASDAQ: AAPL) is reportedly bailing on plans to boost iPhone production after its recently launched iPhone 14 failed to push demand as high as the multinational had anticipated.
Shares broke below the psychologically important $150 level on Wednesday.
iPhone production to remain the same as last year
The iPhone maker will now produce 90 million units in the back half of 2022 – roughly the same on a year-over-year basis. Previously, it had aimed for 6 million more.
Citing anonymous sources, the Bloomberg report also said the demand for Apple’s high-end iPhone 14 Pro was stronger than the entry-level variants. One of its suppliers, therefore, is shifting more of its production capacity to the premium version.
A company representative refrained from commenting on this stock market news. For the year, Apple shares are now down nearly 20%.
Earlier in September, “AAPL” was reported to be the most shorted stock on Wall Street.
Bernstein analyst Toni Sacconaghi reacts to the news
Reacting to the report on CNBC’s “TechCheck”, Toni Sacconaghi – Senior Research Analyst at Bernstein said the stock may falter further as higher interest rates continue to weigh on consumer spending.
If we do see incremental weakness in iPhones and across its offerings, we’ll see a pullback in the stock. If the fear catches up that earnings and revenues are not as secure as we thought, we’ll have a stock that gets back some.
So far, though, Apple Inc has delivered promising results quarter after quarter. In Q3, its profit and revenue was up 8.0% and 2.0% on a year-over-year basis. (link)
Apple shares are now trading below their major moving averages.
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