Apple has reportedly warned suppliers of sliding demand for its latest iPhone 13 – though the technology giant is still headed for a record Christmas quarter.
Reports of the alleged caution prompted investors to duck out of the stock, leaving its share price down more than three per cent to $159.59 a share. Shares had previously closed at $164.77.
The company had initially been knocked by the global chip shortage, a key component in its hardware as well as in cars, leaving technology and automotive heavyweights to battle it out over a limited supply.
The chip shortage had prompted Apple to cut its iPhone 13 production goal by some 10m units, according to Bloomberg, but had planned to make up for the deficit next year.
However, Apple vendors have reportedly been informed that these promised orders will likely not pull through if the demand has fallen back.
Despite the faltering demand for the new tech – Apple is still expected to hit analyst sales projections of $117.9bn in its final quarter.
“Numerous factors are at play including the current situation surrounding the pandemic, people’s willingness to keep hold of their devices a bit longer – more so if they will be at home rather than on the go – and concern for the economic future with rising costs,” technology analyst Paolo Pescatore told City A.M.
This is in part driven by the “huge success” of the iPhone 12 line up, Pescatore explained.
“Also, as reiterated by Apple it is not immune to the challenging global chip shortage which is impacting all consumer electronic providers,” he added.
“For sure, Apple’s broad portfolio and breadth of offerings still puts it in a unique and strong position for future growth.”