Monday, 20 May 2019

Apple Stock Tumbles As iPhone Maker Downgraded Amid Production Cut


Apple stock tumbled on Monday as another analyst downgraded the company amid a report that it has told manufacturing partners to halt plans for additional production lines for the new iPhone XR.


Apple (AAPL) stock fell 2.7% to 201.86 on the stock market today. Shares in Apple plunged 6.6% on Friday after the company reported fiscal fourth-quarter revenue and profit that topped views, despite a 4% drop in iPhone unit sales.

Apple told analysts on the subsequent earnings call that it plans to withhold unit sales figures for iPhones, iPads and Mac products in future financial releases.

The company, meanwhile, has told contract manufacturers Foxconn and Pegatron to suspend plans for additional production lines dedicated to the iPhone XR, reported Japan-based Nikkei on Monday.

Apple’s new iPhone XR, with an LCD screen, starts at $749 for the 64-gigabyte version. The new iPhone XS starts at $999, with the XS Max at $1,099.

Apple Stock Downgraded To Neutral

Rosenblatt Securities on Monday downgraded Apple stock to neutral from buy. Bank of America downgraded Apple stock to hold on Friday.

A Morgan Stanley note says Apple’s revenue guidance of $89 billion to $93 billion in the December quarter implies a 5% to 6% decline in iPhone unit sales.

Amid trade tension with China, Apple’s reported sales growth in the greater China region of 16% in the September quarter. All other regions grew faster, noted an Oppenheimer report published on Friday.

Apple said iPhone revenue growth rose by “double digits” in the September quarter. Oppenheimer says slowdown in new mobile games may be a factor in China’s slowing smartphone sales.


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