Apple (AAPL) stock fell Tuesday after a Barclays analyst said the tech giant may have reduced iPhone 16 production orders by 3 million.
Apple Stock Down On Several Reports
In early trades, Apple stock shed more than 3% after Barclays analysts Tim Long and George Wang said “our checks indicate that orders have been cut for December quarter iPhones at a key Taiwanese supplier.”
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“We believe Apple may just have cut roughly 3M units at a key semiconductor component in iPhones” for the December quarter, they said in a client note. The reductions “if confirmed would be the earliest build cut in recent history,” they added.
The news highlighted questions about demand for the new iPhone, which Apple unveiled last month. Apple also used the rollout to promote Apple Intelligence, the tech behemoth’s bid to play a bigger role in the fast-growing AI trend.
Initial reports pointed to strong demand for the new phone.
Last week, a JPMorgan analyst said delivery lead times expanded in the second week of orders for the new iPhones.
However, the Barclays note will likely raise concerns that iPhone demand is fading, posing a serious challenge for Apple.
Apple stock retreated back to its 21-day average. The shares currently have a Relative Strength rating of 83, up from 82 a week ago.
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