Apple is engulfed with a number of issues
Apple (AAPL) stock has lost 33% in the last three months. Expectations of a weak December quarter for Apple and the broader market sell-offs (QQQ) (VTI) are some of the reasons for this decline. A number of brokerage firms including UBS, Goldman Sachs, Jefferies, Piper Jaffray, and Morgan Stanley have all cut their target price for Apple stock in the last couple of months. All of the firms cited weak iPhone sales and uncertainty in China (FXI) as the main reasons for their price cuts.
Apple had provided a revenue outlook between $89 billion and $93 billion for the December quarter. However, Apple is most likely to report the results at the low end of revenue outlook range, or maybe even lower. Apple suppliers such as Qorvo (QRVO), Cirrus Logic (CRUS), and Lumentum (LITE) have all reported weak guidance for the current quarter in their latest earnings results, which is an indicator for the results to come.
Now, according to Rosenblatt, “Apple may cut another 4 million iPhones from its production plans for the March quarter.” If this claim comes true, it will mean that the problems at Apple aren’t temporary. Apple is already losing its battle with Qualcomm (QCOM). A Chinese court stated that Apple infringed on two Qualcomm patents and was ordered to stop selling the older iPhone models in China. Apple received a similar ban in Germany (EWG) as well, compounding its problems.