Apple is considered as One of the rarest two trillion-dollar companies in the world. But since the last couple of week, the prices of Apple stocks on the Nasdaq index has been dropping constantly. At the same moment, the prices of Apple stocks fell by approximately 3% this Wednesday.
This is considered as the 52nd-week low for Apple stocks on the Nasdaq. Along with that this low is also considered as its new low in the US Stock Market. The recent fall in the prices of Apple stocks is considered to be the continuation of researcher’s estimates on the new flagship product of Apple inline which is the iPhone 14.
The researchers from Trendforce have mentioned that the reason for the fall in the prices of stocks has been because of the cut in the shipment of Apple which is considered sold only 78.1 million units of Apple iPhone 14 which was Apple’s 2022 units. In this manner, Trendforce has cut down its previous estimates for the profits and the prices estimates for apple in the fourth quarter of 2022.
The reasoning for the fall of apple stocks
Along with these estimates, Trendforce also cut down their future estimates for apple products for the first quarter of 2023. Previously Trendforce had estimated that Apple will be able to sell 52 million units in the first quarter of 2023, but looking at the present losses Trendforce has dropped this estimate to 47 million for the upcoming year 2023.
The shortage in the supply of labor at Apple’s Foxconn’s production facility in Zhengzhou province in China will also be responsible for the losses of Apple stocks as it will delay the shipment, as per the research statement of Trendforce.
In this manner, the policy changes in China for covid-19 in the near future will also impact the sales of Apple units. Along with Trendforce, Some other market analysis forms like Morgan Stanley JP Morgan, and Needham have also cut down the future estimates for Apple units and the profits to be generated from the Apple company stocks in the first quarter of next year.
Contrary to the previous analysis, some other analysis forms like Wedbush have been picking up on the side of Apple stocks. Wedbush has mentioned that Apple stocks have to be one of the top picks for any retail investors who want to earn huge profits in the year 2023.
The reason for these estimates given by Wedbush is that Apple company will be able to resolve the issue of supply chain management and then it will be able to effectively work on the tracking of all the demand and supply issues of iPhone 14 Pro along with iPhone 14 max in the next quarter of 2023.