Apple Stock (NASDAQ:AAPL)
Though the new year hasn’t even begun yet, many are already wondering how well Apple (NASDAQ:AAPL) will perform in the next year in terms of producing new products and getting them off the figurative assembly line.
Much of 2022 was focused on Apple (AAPL) and other major tech firms’ dealing with supply concerns concerning their Chinese manufacturing partners. It was stated that Apple (AAPLprimary )’s iPhone manufacturer, Foxconn, was close to getting 90% of its manufacturing capacity back in operation for the iPhone 14 range of devices. The action would go a long way toward easing worries about the manufacturing levels of Apple (AAPL), which are coming out of the Christmas and holiday shopping season.
However, although production levels of the iPhone may be leveling down, there are fresh claims that Apple has directed its manufacturing partners to cut down on making many of the company’s other products. This is even though production levels of the iPhone may be leveling off.
According to Nikkei Asia, Apple stock has reportedly warned many of its suppliers that it requires them to produce fewer components for its MacBook laptops, Air Pods, and the Apple Watch during the year’s first three months. This issue shows the uncertainty that is now taking place in China, which is dealing with a significant increase in COVID-19 cases and has eased up on a significant number of its limitations connected to COVID.
The Nikkei Asia reported that an unidentified “management at an Apple supplier” claimed that the company’s manufacturers “alerted us to reduced orders for practically all product lines since the quarter ending December.” This was in part owing to demand that was lower than anticipated.
After the announcement that the business had lost more than $750 million in market valuation in 2022, Apple stock fell by almost 2% in early trading on Tuesday.
Featured Image: Unsplash @ Gerson Repreza