Home » Apple stock dips after report says company won’t increase iPhone production this year, but analyst sees a silver lining

Apple stock dips after report says company won’t increase iPhone production this year, but analyst sees a silver lining

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Apple’s stock has fallen by more than 1% in pre-market transactions on Thursday, and the company plans to stabilize iPhone production levels more than a year ago, but analysts said investors said. He said that such movements should not be sweated.

Bloomberg News reported That Apple AAPL Thursday morning,
-1.59%
The goal is to “keep iPhone production almost flat in 2022,” with the expectation that there will be a major device update in the fall compared to the feature upgrades added to the new phone last year. , There was a story called “conservative stance”. ..

The report requires Apple to assemble suppliers this year with about 220 million iPhones, consistent with last year’s levels, but some market forecasts previously produced about 240 million. He said he was modeling.

Apple didn’t immediately respond to MarketWatch’s request for comment on its production plans.

Meanwhile, Mizuho analysts said the reported production plan was “not new news for those who do not live on other planets.”

Jordan Klein of Mizuho, ​​a desk-based analyst on the company’s sales team rather than a research unit, said the news was actually “AAPL because it tends to mitigate investor risk and fear AAPL. It could be seen as a net plus for its major suppliers. ” Overordering and producing new iPhones after July will result in excess unsold inventory and reduced material orders after December 2010. ”

This report was produced as consumer electronics companies address the ongoing impact on the supply chain and the outlook for weak consumer spending trends.

Apple Inc. is also raising workers’ wages amid rising inflation, tight labor markets, and the promotion of trade unions among employees of hourly stores. The Wall Street Journal reported.

The iPhone maker told employees on Wednesday that the company is increasing its overall compensation budget by email. Starting salaries for US hourly workers will rise to over $ 22 per hour based on the market, up 45% from 2018. Starting salaries in the United States are also expected to increase.

As the Dow Jones Industrial Average DJIA, Apple’s share price has fallen 24% in the last three months.
+ 0.91%
It is slipping about 6%.

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