Latest News

Apple Ditches iPhone Production Increase After Demand Falters

0

S&P Futures

3,625.25

-35.75(-0.98%)

 

Dow Futures

28,970.00

-233.00(-0.80%)

 

Nasdaq Futures

11,181.75

-152.00(-1.34%)

 

Russell 2000 Futures

1,653.30

-15.10(-0.91%)

 

Crude Oil

78.16

-0.34(-0.43%)

 

Gold

1,625.80

-10.40(-0.64%)

 

Silver

17.95

-0.39(-2.11%)

 

EUR/USD

0.9545

-0.0053(-0.55%)

 

10-Yr Bond

3.9640

0.0000(0.00%)

 

Vix

34.30

+2.04(+6.32%)

 

GBP/USD

1.0666

-0.0065(-0.61%)

 

USD/JPY

144.7410

-0.0500(-0.03%)

 

BTC-USD

18,621.64

-1,518.79(-7.54%)

 

CMC Crypto 200

426.15

-32.99(-7.19%)

 

FTSE 100

6,864.52

-120.07(-1.72%)

 

Nikkei 225

26,173.98

-397.89(-1.50%)

 

(Bloomberg) — Apple Inc. is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize, according to people familiar with the matter.

Most Read from Bloomberg

Germany Suspects Sabotage Hit Russia’s Nord Stream Pipelines

Apple Ditches iPhone Production Increase After Demand Falters

Alzheimer’s Progression Slowed by Drug in Major Trial

Putin’s Mobilization Hits Russia’s Economy in Its Weak Spots

US Housing Prices Fall for First Time Since 2012

The Cupertino, California-based electronics maker has told suppliers to pull back from efforts to increase assembly of the iPhone 14 product family by as many as 6 million units in the second half of this year, said the people, asking not to be named as the plans are not public. Instead, the company will aim to produce 90 million handsets for the period, roughly the same level as the prior year and in line with Apple’s original forecast this summer, the people said.

Demand for higher-priced iPhone 14 Pro models is stronger than for the entry-level versions, according to some of the people. In at least one case, an Apple supplier is shifting production capacity from lower-priced iPhones to premium models, they added.

Apple shares fell as much as 3.3% in pre-market trading on Wednesday. US stock-index futures also turned lower after the news, with contracts on the Nasdaq 100 down as much as 1.5%.

In Taipei, key chipmaker Taiwan Semiconductor Manufacturing Co. fell 2.2% and Apple’s biggest iPhone assembler Hon Hai Precision Industry Co. was down 2.9%, amid a wide selloff of electronics suppliers. ASML Holding NV, maker of advanced chipmaking gear, dropped as much as 3.2% in Amsterdam.

Apple Suppliers Drop as Firm Said to Ditch IPhone Output Boost

Apple had upgraded its sales projections in the weeks leading up to the iPhone 14 release and some of its suppliers had started making preparations for a 7% boost in orders.

An Apple spokesperson declined to comment.

China, the world’s biggest smartphone market, is in an economic slump that’s hit its domestic mobile device makers and also affected the iPhone’s sales. Purchases of the iPhone 14 series over its first three days of availability in China were 11% down on its predecessor the previous year, according to a Jefferies note on Monday.

Global demand for personal electronics has also been suppressed by surging inflation, recession fears and disruption from the war in Ukraine. The smartphone market is expected to shrink by 6.5% this year to 1.27 billion units, according to data from market tracker IDC.

“The supply constraints pulling down on the market since last year have eased and the industry has shifted to a demand-constrained market,” said Nabila Popal, research director at IDC. “High inventory in channels and low demand with no signs of immediate recovery has OEMs panicking and cutting their orders drastically for 2022.”

(Updates with market reaction and shares)

Most Read from Bloomberg Businessweek

Mental Health Crisis Leads Hospitals to Create a New Type of ER

As Home Prices Surge, Americans Are Moving to Cheaper Places

The Supreme Court Is About to Display Its Power Imbalance Again

Google’s Low-Tech Plan to Solve the Opioid Crisis

TikTok Steers Its Charm Offensive Around Loudest Critics in DC

©2022 Bloomberg L.P.

Advertisement

Bloomberg

Apple Suppliers Drop as Firm Said to Ditch IPhone Output Boost

(Bloomberg) — Shares in Apple Inc.’s Asian suppliers extended losses Wednesday after Bloomberg reported the Californian company is backing off plans to increase production of its new iPhones.Most Read from BloombergGermany Suspects Sabotage Hit Russia’s Nord Stream PipelinesApple Ditches iPhone Production Increase After Demand FaltersAlzheimer’s Progression Slowed by Drug in Major TrialPutin’s Mobilization Hits Russia’s Economy in Its Weak SpotsUS Housing Prices Fall for First Time Since 2012Ho

Reuters

Apple drops plan to boost iPhone production as demand falters-Bloomberg

The company told suppliers to curtail efforts to increase assembly of its flagship iPhone 14 product family by as many as 6 million units in the second half of this year, Bloomberg reported. Instead, the Cupertino, California-headquartered company will aim to produce 90 million handsets for the period, nearly the same number as a year ago and in line with Apple’s original forecast this summer, the report said. Apple did not immediately respond to a Reuters request for comment.

Bloomberg

Treasury 10-Year Yield Rises Above 4% to Highest Since 2008

(Bloomberg) — Treasury 10-year yields climbed above 4% to the highest level since October 2008, as investors were rattled by Federal Reserve hawkishness and concern over potential Japanese sales of US government debt.Most Read from BloombergGermany Suspects Sabotage Hit Russia’s Nord Stream PipelinesApple Ditches iPhone Production Increase After Demand FaltersAlzheimer’s Progression Slowed by Drug in Major TrialPutin’s Mobilization Hits Russia’s Economy in Its Weak SpotsUS Housing Prices Fall f

Reuters

Mexican central bank seen pushing key rate to record 9.25% – Reuters poll

The Bank of Mexico is expected to raise its key interest rate to a record 9.25% this week, a Reuters poll showed Monday, following in the steps of the U.S. Federal Reserve’s recent 75 basis points hike in a bid to tackle stubbornly high inflation. All 20 analysts polled expect Banxico, as the central bank is known, to raise its benchmark rate on Thursday by three-quarters of a percentage point from 8.50%, in what would be the bank’s third-consecutive increase of this size. “In an environment in which pessimism in the financial markets continues, given expectations of greater tightening by the Fed, we believe that Banxico will continue to try to remain cautious, contributing to greater local stability,” said Grupo Financiero Banorte.

Motley Fool

Why Apple Stock Was Up Earlier This Morning

Worries over higher interest rates and the economy have sent Apple shares down 14% year to date. There were reports out of China that demand for iPhone 14 Pro was strong and that there was lower demand for lower-priced models. Here’s what that might mean for Apple’s business.

WFLD

Lightfoot blasts report on Invest South/West construction delays

Chicago Mayor Lori Lightfoot blasted a story in Crain’s Chicago Business on Tuesday, that accurately reported that construction has not yet begun on any of the 11 projects she’s announced in her Invest South/West program.

Reuters

Scotiabank taps board member Thomson as CEO in surprise move

Bank of Nova Scotia said on Monday it appointed Scott Thomson, a board member for six years, to succeed Chief Executive Officer Brian Porter, a move that came as a surprise due to the new CEO’s lack of familiarity among bank investors. Thomson, 52, is joining Scotiabank from Finning International Inc, the largest dealer of Caterpillar Inc services and equipments, where he was the top boss for nine years. Thomson is stepping up to lead a company that has a market cap to C$83 billion ($60.3 billion), compared with Finning’s C$3.7 billion market value.

Bloomberg

Japan Demands Russian Apology Over Detention of Diplomat

(Bloomberg) — Japan demanded an apology from Russia for what it saw as the unjust detention of one of its diplomats in Vladivostok, who Tokyo said was blindfolded and physically restrained after the Kremlin falsely accused him of spying.Most Read from BloombergGermany Suspects Sabotage Hit Russia’s Nord Stream PipelinesPutin’s Mobilization Hits Russia’s Economy in Its Weak SpotsAlzheimer’s Progression Slowed by Drug in Major TrialUS Housing Prices Fall for First Time Since 2012Everything-Sellof

Insider Monkey

11 Best Chinese Stocks To Buy Now

In this article, we discuss the 11 best Chinese stocks to buy now. If you want to read about some more Chinese stocks to buy now, go directly to 5 Best Chinese Stocks To Buy Now. Even though an interest rate hike by the Federal Reserve has dampened hopes of a soft landing for the […]

Bloomberg

Yuan Falls to Weakest Since 2008 on Signs PBOC Is Easing Grip

(Bloomberg) — The onshore yuan fell to the weakest level against the dollar since the global financial crisis in 2008, amid an incessant advance in the greenback and speculation China is toning down its support for the local currency.Most Read from BloombergGermany Suspects Sabotage Hit Russia’s Nord Stream PipelinesApple Ditches iPhone Production Increase After Demand FaltersAlzheimer’s Progression Slowed by Drug in Major TrialPutin’s Mobilization Hits Russia’s Economy in Its Weak SpotsUS Hous

TheStreet.com

Volkswagen Reportedly Recalls Popular Electric Vehicle

When Volkswagen introduced the ID series of electric cars in 2020, the German automaker said ID stood for “intelligent design, identity and visionary technologies”. The ID series is the first group of electric cars from Volkswagen that are built from the ground up to be electric. The ID.4, ID.5 and ID.3 were Volkswagen’s top selling battery-powered EVs for the first half of 2022.

Reuters

US STOCKS-Wall Street drops; S&P 500 relinquishes summer gains

Wall Street slid further into bear market territory on Monday as investors fretted that the Federal Reserve’s aggressive campaign against inflation could throw the U.S. economy into a sharp downturn. After two weeks of mostly steady losses on the U.S. stock market, the Dow Jones Industrial Average was on the verge of confirming it has been in a bear market since early January.

Bloomberg

US Housing Prices Fall for First Time Since 2012

(Bloomberg) — Say goodbye to the housing bull run. US home prices — for the first time in a decade — are falling. Most Read from BloombergGermany Suspects Sabotage Hit Russia’s Nord Stream PipelinesEverything-Selloff on Wall Street Deepens on 98% Recession OddsPutin’s Mobilization Hits Russia’s Economy in Its Weak SpotsDrinking Several Cups of Coffee a Day May Be Linked to Longer Lifespan in StudyGoldman and BlackRock Sour on Stocks as Recession Risk RisesA national measure of prices in 20 la

Dow Jones Futures Fall On Apple iPhone Report, Rising Treasury Yields; Biogen Alzheimer’s Drug Slows Decline

Previous article

Tesla bear sees a 50% plunge in the stock

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News