AAPL hits 52-week low as iPhone shipments forecasted to drop into 2023.
By The Headlines, December 29, 2022 | 09:46 AM
Apple ran into some challenges with the production of their new iPhone models this fall. Specifically, the Pro and Pro Max had to deal with a COVID-19 outbreak in China which hit one of its suppliers- Foxconn.
The company's stock has been dropping lately, it hit a 52-week low and is currently worth $1 trillion less than it used to be. They're also losing ground in the smartphone industry with multiple harsh forecasts.
In November, Apple told customers and investors about a problem it has been having in China. The company said that it was having a hard time getting enough materials to make the iPhone 14 Pro and keep up with demand.
TrendForce released a report with a revision to its estimate of the sales of iPhone 14 units and a forecast that Apple will struggle into 2023.
“TrendForce has corrected down its projection on the total shipments of all iPhone 14 models in 2022 to 78.1 million units.”
TrendForce has reported that the Foxconn factory responsible for producing iPhone 14s has not been at over 70% utilization levels since October. But another one of their factories has helped and it seems to have not been enough.
The recent labour shortage in China is expected to get worse in Q1 of 2023. TrendForce has said that the limited availability of skilled labour started in December, and we can see the effects.
AAPL lost $1 trillion
AAPL shares have dropped and are currently trading at $125.92.
The company's stock price has fallen from its 52-week high on January 3, 2022, of $183.92 to just under its 52-week low now.
Apple's market cap is currently at $2 trillion, which sums up its total loss in valuation at $1 trillion for 2022.
Apple has struggled with chip shortages faced by much of the industry. Photograph: Andy Wong/AP