Apple stock down today as data suggests iPhone sales could be weak in the new year.
That’s why today Apple (NASDAQ: AAPL) stock has shown a decline of 3% from the previous day’s closing. The company’s stock today showed another 52 week low level and running around 126 dollars.
What’s the news about Apple stock?
Market research firm Trend force cut its forecast for iPhone shipments in 2022 following an outbreak of COVID-19 in China’s Zhengzhou, where Foxconn manufactures the iPhone.
Due to capacity constraints at the Zhengzhou plant, Trend force now expects total iPhone 14 shipments to drop to 78.10 million from earlier forecast. It also said a labor shortage in China would cause shipments to decline 22% to 47 million for the fiscal first quarter.
Separately, JD.com also launched its Chinese New Year sale with iPhone discounts down to $129 for the iPhone 14 and $143 for the iPhone 14 Plus.
The move potentially indicates that the phones are selling more slowly on JD.com, China’s largest direct retailer, than had been expected.
So what will happen to Apple stock now?
Apple stock has fallen in recent weeks on concerns about iPhone production and as investors price in higher interest rates next year. However, there is a silver lining in the news about the production delay.
Demand has been strong for the new iPhones and higher-priced Pros, which means sales should improve as production ramps up.
Now what to do in Apple stock according to technical analysis?
According to us, long term investors should buy apple stock now, this stock may show good growth in the long term if it declines in the short term.
Our Rating For Long Term: 8.5/10
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