Apple Stock Hits Lowest in 1.5 Years... Rising Concerns Over iPhone Production Disruptions in China

[Asia Economy Reporter Haeyoung Kwon] Apple’s stock price fell to its lowest level in a year and a half amid a sell-off of big tech stocks due to concerns over iPhone supply disruptions.

On the 27th (local time), Apple’s stock closed at $130.03, down 1.4% from the previous day in the U.S. stock market. This is the lowest level since June of last year.

Apple’s stock has dropped 27% so far this year, performing better than the Nasdaq 100 index, which fell 34% during the same period. However, it has lagged behind the tech stock index over the past month, including three consecutive days of decline.

The stock price declined following reports that Apple is facing a production halt crisis for the iPhone due to the spread of COVID-19 in China. Apple’s largest production base, Foxconn’s factory in Zhengzhou, Henan Province, China, is experiencing production disruptions until the first half of next year due to a surge in confirmed cases and other impacts.

[Image source=Yonhap News]

On the 26th, JP Morgan analyzed that "iPhone supply is improving and demand and supply are gradually balancing." Contrary to Apple’s earlier announcement that "the balance between iPhone demand and supply is much better aligned," the market still perceives a supply shortage. Consequently, concerns are spreading that Apple’s December performance may fall short of market expectations.

JP Morgan analyst Sameek Chatterjee stated, "Recent smartphone shipments in China show that the industry is facing headwinds."

As tech stocks declined, the Nasdaq 100 index also fell 1.5% that day.

Bloomberg reported, "Investors expect the U.S. Federal Reserve (Fed) to maintain a hawkish stance to fight inflation, causing tech stocks to face the worst December since the dot-com era."

This content was produced with the assistance of AI translation services.