Apple: Biggest drop in the Dow after its warning

BFM Stock Exchange

(CercleFinance.com) – The title Apple fell this Monday at the opening of Wall Street following the warning issued the day before by the technological giant, an alert which gives rise to some concerns two months before Christmas.

In the first exchanges, the action of the American group shows a limited decline of around 1.7%, which still makes it the largest drop in the Dow Jones index.

The Apple brand warned last night of low production capacity for the iPhone 14, a warning justified by the drastic containment measures currently affecting China.

The Californian company predicts that these difficulties will weigh on its deliveries and extend the reception times for its customers despite the still solid demand surrounding the smartphone.

“China’s zero-Covid policy is a blow to Apple in its most important holiday quarter of the year,” said Wedbush analyst Dan Ives.

According to the specialist, Apple’s sales are currently penalized only up to 3%, but this level could deteriorate if the situation were to continue.

‘If the Zhengzhou factory were to continue to operate on lower capacities over the coming weeks, then there would be fears of iPhone Pro shortages during the particularly important Christmas period, first and foremost in the United States’, worries Dan Ives.

BofA analysts have thus decided to lower their price target on the value of 160 to 154 dollars, fearing sales of iPhone much weaker than expected.

They now estimate at 78 million the number of iPhones that would be sold over the last three months of the year, against 84 million so far.

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