AAPL Stock Affected Due to iPhone Weak Demand
As a result of the weak demand for the product, Apple is said to have given instructions to its suppliers to reduce their efforts to boost the assembly of its iPhone 14 range by as many as 6 million units in the second half of the year. This information was reportedly included in an article that was published earlier by Bloomberg.
Following news that the tech giant was abandoning plans to increase manufacturing of the most recent generation of its iconic iPhone, Apple Inc. (NASDAQ:AAPL) shares dropped 4% in premarket trade on Wednesday, putting pressure on other growth stocks.
This news caused the market to react negatively to other growth stocks.
AAPL stock saw its price fall to $145.89 and was on course to begin trading at a level that would be the lowest it has been in the last two months.
Other growth stocks, such as Microsoft Corporation (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Google’s parent firm Alphabet (NASDAQ:GOOGL), and Tesla Inc. (NASDAQ:TSLA), saw their prices fall by between 1.5% and 3% as a direct result of the news.
“Weaker consumer demand is to be expected when utility bills are going up, interest rates are going up, and mortgage costs are going higher,” said Patrick Armstrong, chief investment officer at Plurimi Wealth in London. “Weaker consumer demand is expected when interest rates are going up, and mortgage costs are increasing.” Patrick Armstrong, who serves as chief investment officer, states, “discretionary expenditure is likely to be constrained by that.”
“Apple (AAPL stock) is not immune to it, and it’s probably symbolic of what’s occurring across the board right now in terms of many various organizations,”
Due to the quick increase in interest rates implemented by the Federal Reserve in the United States this year, rate-sensitive growth equities have suffered significant losses.
In comparison, the S&P 500 value index has only been down 17% so far this year, while the growth component of the index has dropped 29%.
The announcement caused a decline in the share prices of other semiconductor companies; Apple suppliers Broadcom (NASDAQ:AVGO), Qualcomm (NASDAQ:QCOM), Taiwan Semiconductor, Skyworks Solutions (NASDAQ:SWKS), and ON Semiconductor all saw their stock prices drop by between 1.2% and 2.8%.
Apple’s European component suppliers, including STMicroelectronics, BE Semiconductor, Nordic Semiconductor, ASM International (OTC:ASMIY), and Infineon (OTC:IFNNY), all had declines ranging from 1.6% to 4.7%. ASML also experienced a decline of 1.6%.
Featured Image: Megapixl © Lester69
Author Valerie Remorosa 
