A pessimistic iPhone 13 report looks set to see AAPL lose the gains made in the past couple of days. The company defied the general fall in stocks over COVID-19 Omicron fears, but pre-market trading suggests that it will lose these gains today …
The past couple of days have not been good for most stocks, but we noted yesterday that AAPL was looking like a rare winner.
Omicron fears caused most stocks to fall yesterday, including tech giants like Amazon, Google, Meta, and Microsoft. The Dow lost 651 points, the Nasdaq was down 1.6%, and the S&P 500 down 1.9%.
AAPL, however, not only weathered the storm, but saw its share price increase by 3.16% as investors saw it as a safe haven, with good short- and long-term prospects.
The good news for AAPL continued yesterday, close of trading seeing it up 2.59%. However, pre-market trading sees the stock down almost 3% at the time of writing.
That’s likely in response to a Bloomberg report that Apple warned suppliers about falling demand for the iPhone 13.
Apple is reportedly telling suppliers that it doesn’t expect iPhone 13 sales to pick up for the holidays and beyond, according to Bloomberg News.
Apple is currently limited by how many iPhones can be assembled with available parts and not demand, but Bloomberg says Apple doesn’t expect customers experiencing long wait times to maintain interest when supply picks up.
In other words, by the time there is better availability in early 2022, the newness of the iPhone 13 will have worn off, and some consumers will be figuring they might as well wait for that year’s phones.
Apple itself will be largely uninterested in these short-term movements. CEO Tim Cook has often said that the company isn’t even concerned with quarterly performance. The company believes that if it focuses on the products, the long-term fortunes will follow.