Stocks Dive on iPhone Concerns: Production Plans Cut Again and Again

Stocks Dive on iPhone Concerns: Production Plans Cut Again and Again

Stocks Dive on iPhone Concerns: Production Plans Cut Again and Again

"Chip stocks will get impacted by Apple and when you have weakness, it essentially justifies the recent selloff and investors are just being a little cautious", said Randy Frederick, vice-president of trading and derivatives for Charles Schwab in Austin.

The same is not true with Apple's suppliers, however, who, according to the Wall Street Journal, have been thrown into turmoil by the ups and downs in iPhone demand.

Apparently, the biggest revision is the iPhone XR where it is said that Apple is slashing production as much as a third from the 70 million units the company expects to produce between September 2018 to February 2019. Now this fate has befallen the expensive iPhone XS and iPhone XS Max.

Trading volumes were also thin in the holiday-shortened weekend ahead of Thanksgiving Thursday and short trading session on Friday, which added a little bit of volatility to the markets, Frederick said.


Wind that things were not good came last week as major iPhone component manufacturers such as Qorvo Inc., Lumentum Holdings Inc. and Japan Display Inc., cut quarterly profit estimates as a result of a reduction in previously-placed orders from a large, unnamed customer.

At 12:59 p.m. EDT the Dow Jones Industrial Average was down 392.90 points, or 1.55 per cent, at 25,020.32, the S&P 500 was down 40.74 points, or 1.49 per cent, at 2,695.53 and the Nasdaq Composite was down 185.94 points, or 2.57 per cent, at 7,061.93.

Boeing Co and Caterpillar Inc, seen as trade sensitive stocks, fell 3.3% and 1.6%, respectively. Only the headline has been changed.

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