William Gallagher
Sources in China say Apple has reduced its orders from suppliers for almost all of its products, and the news has seen AAPL shares drop.
Apple shares had risen on the news that production in Foxconn's major iPhone plant in Zhengzhou is back to 90% capacity. However, a new report about Apple cutting orders has seen the company fall 3.55% on NASDAQ.
According to Nikkei Asia, the supply chain in China was struggling as the local authorities relaxed their severe COVID lockdowns and allowed factories to reopen. Then came the reduction in orders.
"Apple has alerted us to lower orders for almost all product lines actually since the quarter ending December," a source said to be an Apple supplier manager, told the publication, "partly because the demand is not that strong."
"The supply chain in China is still trying to cope with the latest abrupt policy turns," continued the source, "which brought a shortage of laborers because of the sharp COVID surges."
Reportedly, Apple has specifically cut its orders for AirPods, Apple Watch, and MacBooks, for the first quarter. It's not know by how much the orders have been reduced.
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29 Comments
Nikkei Asia and that reporter is a paid mouth piece for Apple short sellers. Yes they get away with this stuff in Asia.
That report is faulty given AirPods , watch and MacBook have completely different supply chains so one “anonymous” supply chain manager in China would not have that information.
Let’s see, after the xmas rush, there’s usually a big drop in orders for the beginning of the year. Wonder if that might have anything to do with it. That is if this is even true. Supply Chain rumours are mostly trash anyway.
I doubt anything will change, but Apple’s pricing policy is not in keeping for folks faced with increased heating bills, increased prices and wages not keeping pace with any of it. All of my previously comfortable Apple subs are under review. I’m making do with my older phone for another year. Much coveted AirPods Max are a no-go for the foreseeable*. Etc.
With regards to Macbook sales, I think Apple is a victim of their own success here; there’s no longer a need to update your laptop as frequently as you might have otherwise done as it’ll do everything you want much cooler and for longer than the Intel processors, so they’ll be used for longer.