Apple shares extend decline as concerns mount over iPhone demand
Apple (NASDAQ: AAPL) shares are facing their fifth consecutive session of declines, marking a challenging start to 2024. Despite a remarkable 50% rally in the previous year, concerns over iPhone demand have led to a 5.5% drop in share value, erasing over $160 billion in market capitalization in the first three trading days of 2024. The stock fell a further 0.7% in pre-market Friday.
Foxconn predicts Q1 revenue drop as market demand slows
Taiwan’s Foxconn, Apple’s main iPhone assembler, said today it anticipates a year-on-year decline in first-quarter revenue due to slower market demand. Foxconn is due to report on March 14, when it will also update its outlook. The traditionally quieter first quarter is marked by decreased demand for smartphones and electronics after the holiday period.
First quarter slump in smartphone demand affects Apple’s supplier
Foxconn’s prediction of a revenue drop in the first quarter due to slower market demand raises concerns for Apple. As Apple’s main iPhone assembler, any decline in Foxconn’s revenue is indicative of reduced demand for iPhones. This decline in demand comes as no surprise, as the first quarter is typically a quieter period for smartphone sales following the holiday season. However, the extent of the decline has led to increased concerns among investors about the overall demand for iPhones.
Analyst downgrades reflect worries about iPhone sales
Apple stock witnessed two rare downgrades this week, from Piper Sandler and Barclays, both citing iPhone demand worries. These downgrades reflect the growing concerns among analysts about the potential impact of slowing iPhone sales on Apple’s overall financial performance. The downgrades suggest that these analysts believe the current slowdown in iPhone demand is not just a temporary trend but could have a lasting impact on Apple’s revenue and profitability.
Apple’s challenging start to 2024 continues with fifth consecutive share price drop
The challenging start to 2024 for Apple continues with the fifth consecutive decline in its share price. The concerns over iPhone demand have resulted in a significant decline in the company’s market capitalization. After a remarkable rally in the previous year, the sudden drop in share value has sparked worries among investors and analysts alike. The slump in Apple’s share price is a clear sign that the market is losing confidence in the company’s ability to maintain its impressive growth trajectory. As the drop continues, Apple will need to address the concerns surrounding iPhone demand to regain investor trust and stabilize its stock price.
Analyst comment
Negative news.
As an analyst, the market is likely to continue to be negatively impacted by concerns over iPhone demand, leading to further declines in Apple’s share price. The company will need to address these concerns and regain investor trust in order to stabilize its stock price.
