As a result of COVID-19-related labor constraints in China, the fundamentals of the company continue to be challenged.
Delays in production in China have been the source of shortages.
Shares of AAPL have been negatively impacted by both macroeconomic and geopolitical concerns.
Increasing interest rates and the strength of the dollar have been detrimental to the revenues of international corporations like AAPL.
The deterioration of relations between Washington, DC and Beijing, as well as the possibility of legislative action to ban Chinese companies such as TikTok, have contributed to an increase in the difficulty of the situation for businesses such as AAPL that have manufacturing operations in China.
The anticipation of a severe economic downturn in the United States in 2023 has led many consumers to reduce their spending on expensive goods. This has had an effect on the demand for brand-new iPhones, computers, and notepads.
The fundamental and technical environment surrounding AAPL has combined to produce a bearish storm for its share price.
Corrections made by AAPL over the past 20 years:
From December 2007, when they were trading at $7.25, AAPL shares bottomed out at $2.79 in January 2009.
In September of 2012, AAPL share prices hit $25.18, and in April of 2013, they reached $13.75.
The price of the share dropped from $33.63 in April 2015 to $22.37 in May of the following year.
AAPL reached a high of $58.37 in October 2018, but it dropped to $35.50 in January 2019, a decrease of 39.2%.
The 2020 epidemic caused a decline of 35.2% in AAPL share price between January and March.
Many market players are experiencing anxiety as a result of AAPL's decrease of 31.2% in 2022; however, the history of the company demonstrates that corrections are frequent.
The sum of cash on hand and short-term investments held by AAPL is currently $48 billion.
a long-term asset value of over $352.7 billion, compared to a long-term liability value of $302 billion.
AAPL received an A+ for its profitability factor grades.
Bearish market.
Those with the most capital will benefit from the most robust bear market rallies.
If AAPL's share price continues to fall, the company may choose to make accretive acquisitions or buy back shares.
Because Apple is such an iconic brand, the growing prosperity in India will lead to an increase in demand for iPhones and other products manufactured by Apple.
For AAPL's app store in Europe, the risk is greater than the outcome that is most likely to occur.
AAPL was one of the first companies of its kind.
Innovation is important to the company.
The long-term chart for AAPL displays the returns to shareholders.
Apple's expenditure on the media is completely out of hand.
The media behemoth is currently on a trajectory that will result in losses of $1.5 billion each quarter due to competition from the tech giant.
Despite slow growth, the company is costly when valued at 20 times the forward forecasts of its earnings per share.
By maintaining tight control over its expenses, Apple ( $AAPL) was able to become the most valuable firm.
Apple TV+ overspent on content yet failed to become a market leader despite its efforts.
This week, Apple shares fell to its lowest level in 18 months due to supply concerns with the iPhone 14 Pro.
As a result of problems with iPhone supply and general market conditions, Apple's share price dropped to a level not seen in 18 months last week.
On Wednesday, Apple's shares finished trading at $126.04, which became the company's lowest level since June 2021.
In recent months, COVID-19 difficulties have prevented Foxconn from producing an adequate amount of iPhones.
Foxconn employees in Zhengzhou, China staged a protest about COVID-19-related substandard working conditions one month ago.
Even though China has relaxed some of its limitations, the virus has forced Foxconn to experience a shortage of workers.
Apple advised customers one month ago that shipments of the iPhone 14 Pro and iPhone 14 Pro Max will be lower than anticipated due to limits imposed by Foxconn.
According to TrendForce's research, Foxconn's capacity utilization rate has not surpassed 70 percent ever since the production problems began.
The iPhone 14 Pro and 14 Pro Max both had shipping delays of several weeks due to the increased demand for the products.
The iPhone 14 and 14 Plus can be purchased at the Apple online shop.
Because of issues with COVID-19, economic unpredictability, and the upcoming Chinese New Year holiday next month, TrendForce believes that iPhone production issues will continue into early 2023. As a result, the company has reduced its forecast for the number of iPhones that will be shipped during the first quarter to 47 million units, down from 52 million.
Disclaimer: The material in this newsletter is for educational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy, or investment product. This newsletter is not a substitute for professional investment services. Past performance is no guarantee of future results, and there is no assurance that investment objectives will be achieved. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. All investments contain risk.