Apple shares shed more than 4 percent on Wednesday after the demand for the company’s latest device, iPhone 14, plummeted on weaker demand following reports of issues.
Investors King learnt that the slow demand for iPhone 14 which was reported late Tuesday reflected on Apple shares on Wednesday as it traded in the red, declining by 4 percent.
Bloomberg earlier reported that Apple is slowing down the production of its latest device, a reflection of poor market demand for the iPhone 14.
Bloomberg further noted that Apple had produced about 90 million units of iPhone 14 during the second half of 2021 with the plan to produce additional 6 million units during the second half of 2022.
However, consumers are rather disposed to iPhone 14 pro which they claim has a more significant upgrade from iPhone 13. iPhone 14 retains most of the features of iPhone 13.
According to Abhilash Kumar Strategy Analytics “Prospective iPhone 14 buyers may opt for iPhone 13, given the hefty discount on the older model”.
Checks by Investors King on Wednesday revealed that the shares of the world’s most valuable public traded company dropped to as low as $145.22 immediately after the U.S. market opened on Wednesday, losing 4 percent of its value in a matter of minutes. It, however, retraced back up and traded at $147.88 at the time of this report.
Similarly, Apple suppliers were not spared in the downturn as shares of Qualcomm (QCOM.O) dropped to a low of $117.97 before moving back up to $119.32 at the time of this report.
Other Apple suppliers which were not spared from the negative news include Infineon (IFXGn.DE) and ASML (ASML.AS).
Meanwhile, Apple has begun to shift its production from China to India. A recent report published by JP Morgan and reported by BBC suggested that Apple is looking to shift 25% of its iPhone production to India by 2025.
The report added that Indian factories will start with the production of iPhone 14 and iPhone 14 plus model. The factories in India will only cover 5 percent of the entire production supply which will equate to 1 million units a month.
