Apple (NASDAQ:AAPL) is predicted to hit a rocky quarter as depleting iPhone sales continues to hunt the company. As a matter of fact, reports revealed that the tech giant has to cut down the production for their flagship iPhone X as demands die down.
Furthermore, the company is experiencing a massive turbulence in the market as their shares continue to trade bearishly. Apple’s stocks were trading on the bearish territory for five trading sessions in a row which ended last Tuesday.
On the brighter side, the tech giant’s bearish run was halted last Wednesday. Meanwhile, they managed to hit great market performance as their stock climbed by a total of 0.5%, closing at 163.65 last week, breaking their bearish run.
The company’s soft markets session are brought by the continued concern on iPhone demand. The supply is looking to hit the roofs and it drives investors on the line. There was even an instant where the market went “full panic mode” as production news hit the headlines.
According to reports, the company is looking to cut its iPhone X production and supply to 8 million units in this year’s second quarter. To add, Apple is reportedly looking to kill the unit next year as the demand avalanches down.
On the topic of iPhones, the company is expected to introduce an all-new roster this coming September. Apple is expected to unveil a total of 3 new models this year, 2 of them are also expected to sport an OLED screen.
Apple’s stock has been earnestly pressured as demand shrinks to concerning levels. The depleting demand is surprising as the smartphone industry continues to expand into stellar figures and remain as one of the backbones of the tech market.
Apple’s Earnings Expectation
Going back to the market’s prediction, Apple is expected to earn positive figures despite the bearish performance in the market. A $2.69 a share is expected on sales of $60.98 billion. The predictions are 28% higher on a year over year period, and 15% higher in its fiscal second quarter.
Furthermore, bulks of analyst are expecting the company to have a big up in share buybacks and dividends.
A looming problem that the company may stumble upon this next quarter is the brewing trade wars. The trade dispute between the USA and China, if it continues, will greatly hit the already lackluster performance of Apple.