ເປັນຫຍັງຫຼັກຊັບ Apple ຍັງຫຼຸດລົງ? ບັນຫາການຜະລິດຍັງຄົງເຮັດໃຫ້ຮຸ້ນນີ້ຫຼຸດລົງ

Key Takeaways

  • Apple stock prices fell some 27% in 2022.
  • Production problems in Chinese factories are putting downward pressure on stock prices.
  • Apple hit a $3 trillion valuation in January 2022. Since then, its valuation has fallen to less than $2 trillion.

In the last year, Apple stock has taken a tumble. Among the main problems causing the fall in stock prices are production issues that have plagued the company in recent months.

Let’s take a closer look at the production problems facing Apple.

ເກີດ​ຫຍັງ​ຂຶ້ນ?

In 2022, Apple stock prices fell by around 27%. The significant drop took a big bite out of Apple’s valuation. The company briefly hit a $3 trillion valuation early in 2022. But since then, Apple’s value fell to just under $2 trillion before edging back up to the $2 trillion mark a day later.

Of course, that still makes Apple a major company. In fact, it’s currently the largest publicly-traded company in the world. However, falling stock prices at this large company are obviously still cause for concern among investors.

The tumultuous economic climate isn’t doing Apple any favors. After all, most companies are seeing their stock prices take a hit as the Federal Reserve continues to raise interest rates and high inflation detracts from consumers’ purchasing power. But many are pointing to Apple’s production problems as the root cause of falling stock prices.

Production Problems

Without a product to sell, Apple cannot continue putting up impressive revenue numbers. Unfortunately for the company, it’s been facing significant production problems for some top-selling products.

iPhone Manufacturing Issues

Although most of the world has eased up on pandemic restrictions, China has not. In the midst of country-wide protests, the Foxconn factory in Zhengzhou has been unable to meet its production goals, in part due to worker unrest over issues of payment. Since this factory is where Apple produces the most iPhones, there has been a shortfall of the product.

According to some reports, Apple might have a shortfall of six million iPhone Pro units on its hands. With a shortage of iPhones, some investors expect the company to report less revenue for the year. Fear of lower revenue is one common reason for a drop in stock price.

Rerouting The Supply Chain

With Foxconn producing around 70% of iPhones, Apple is relatively reliant on the Zhengzhou factory to meet its sales goals. After all, Apple can’t earn money without selling its products to consumers.

Protests across China have pushed back the timeline of iPhone production. And, of course, the company isn’t thrilled about the situation. After months of protests, Apple is reportedly accelerating plans to move its production to other countries.

Reports that the company was looking to move its manufacturing outside of China surfaced in May 2022. But since then, the significant production delays and continued protests across China seem to have pushed Apple into action.

According to recent reports, Apple is looking to shift production into countries like India and Vietnam. The move will distance Apple from the fallout of the Foxconn protests. Although details are sparse, some sources have reported that Apple may move up to 45% of iPhone production to factories in India.

But the reality of the situation is that Apple cannot wave a magic wand and seamlessly move production to another country. It may take years and billions of dollars to move iPhone production out of China.

As one of the world’s largest companies, Apple certainly has the resources to make the move. But the cost of moving might be too painful for some investors, which could lead to further drops in the stock price.

Impressive Revenue

Despite the production problems and bumpy economic times, Apple is still putting up very impressive numbers. On October 27, Apple announced revenue of $90.1 billion for the fourth quarter of 2022, a record number.

With revenue up 8% from the same time last year, Apple’s impressive numbers are a saving grace in the face of their production issues. The high revenue indicates that demand for Apple products is still incredibly strong.

As the company works to recalibrate its supply chain, strong customer demand will make the changes less painful. After all, demand for products outpacing supply isn’t the worst problem for a company to have. Apple now faces the challenge of finding a way to keep up with the intense demand for its products.

How to Invest in Tech

The tech industry has faced many problems this past year. In addition to a wave of white-collar layoffs across the industry, many big tech companies have seen their stock prices go on a rollercoaster ride.

As an investor, it’s challenging to optimize your portfolio in times of rising interest rates, high inflation, and recession fears. Even the largest company, Apple, is not immune to our current economic and geopolitical issues. And constantly monitoring the markets for changes isn’t something every investor has the time or desire to do.

One way to streamline your portfolio management is to work with Q.ai’s Investment Kits. Through an Investment Kit, you can rely on artificial intelligence to monitor the market for you. If something changes, the AI-powered tools will make the appropriate adjustments to your portfolio each week to stay in line with your goals and risk tolerance.

If you are interested in the technology industry, consider ຊຸດເທັກໂນໂລຢີທີ່ພົ້ນເດັ່ນຂອງ Q.ai as an option for your portfolio. Q.ai also offers ການປົກປ້ອງຫຼັກຊັບ ເພື່ອປົກປ້ອງຜົນປະໂຫຍດຂອງທ່ານແລະຫຼຸດຜ່ອນການສູນເສຍຂອງທ່ານ, ບໍ່ວ່າທ່ານຈະລົງທຶນໃນອຸດສາຫະກໍາໃດກໍ່ຕາມ.

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Source: https://www.forbes.com/sites/qai/2023/01/08/why-is-apple-stock-still-falling-production-problems-still-driving-this-stock-down/