Apple sinks on fears of slowing iPhone sales

Apple's stock is as red as the n...

Posted: Apr 20, 2018 8:22 PM
Updated: Apr 20, 2018 8:22 PM

Apple's stock is as red as the newest version of the iPhone 8.

Shares of Apple fell more than 3% Friday, and they are now down nearly 5% this week. Apple's stock has given up its gains for the year.

Why has Apple suddenly turned sour? Growing fears that Apple will report sluggish iPhone sales when it releases its earnings on May 1.

Morgan Stanley's Katy Huberty slashed her iPhone shipment projections for the quarter ending in June on Friday, citing weakness in China. Canaccord Genuity's Michael Walkley also cut his iPhone sales forecasts and cut his earnings estimates for Apple too.

It doesn't help that the chief financial officer of a key Apple chip supplier -- Taiwan Semiconductor -- warned of "mobile softness" and "continued weak demand" when it reported earnings this week.

That's a big reason why shares of other semiconductor companies that make processors used in iPhones were hurting as well.

Shares of Qorvo, Skyworks Solutions and Cirrus Logic plunged this week, as did the broader Philadelphia Semiconductor Index.

It's possible that Apple's iPhone X, which does not have a home button, uses facial recognition and lacks a jack for headphones, may be a little too different for people used to iPhone upgrades being more evolutionary than revolutionary.

Most analysts cite weak iPhone X demand as the biggest problem for Apple.

Related: Apple memo warning employees about leaking info gets leaked

But the big question now for investors is whether Apple woes will be a drag on the broader market for the foreseeable future.

Apple is the most valuable company in the world, worth more than $840 billion. The drop in Apple's stock price Friday was one of the big reasons why the Dow, which Apple is a member of, fell more than 200 points. The broader S&P 500 and Nasdaq sank too.

Other big tech stocks also tumbled Friday. But interestingly enough, the other four of the so-called FAANG stocks are all still up for the week.

  • Facebook, which will report its latest earnings on Wednesday, has gained about 1% on hopes that the Cambridge Analytica data scandal did not lead to a mass defection of users and advertisers.

  • Amazon has soared more than 7% after the company announced a deal to sell Fire TV sets at Best Buy and said that it had more than 100 million Prime members. Amazon reports its earnings on Thursday.
  • Netflix surged 7% thanks to its latest earnings report. The company wowed Wall Street with better than expected subscriber growth in the US and internationally.
  • Google owner Alphabet is up 3.5%. It reports earnings on Monday. Analysts expect continued strength in its core search advertising business. Google may also benefit from iPhone softness if more consumers are buying phones running on Google's Android operating system.

So it looks like investors believe that, for now at least, one bad Apple shouldn't spoil the rest of the Big Tech bunch.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 350070

Reported Deaths: 7590
CountyCasesDeaths
Hinds24512449
DeSoto23513283
Harrison21172335
Rankin15798293
Jackson15735254
Madison11171227
Lee10903180
Jones9223169
Forrest9027163
Lauderdale8087244
Lamar724890
Lowndes7199152
Lafayette6631125
Washington5661140
Pearl River5357154
Oktibbeha503198
Bolivar5004134
Warren4817128
Panola4812112
Marshall4739106
Pontotoc452473
Hancock440388
Neshoba4401181
Union438979
Monroe4369138
Lincoln4228116
Pike3739114
Leflore3676125
Alcorn355374
Tate354988
Sunflower351094
Adams347490
Scott346677
Yazoo342977
Copiah330869
Simpson327191
Itawamba317281
Coahoma315685
Tippah312869
Prentiss302563
Covington302384
Marion289882
Leake288676
Wayne280945
George277351
Grenada272188
Newton266864
Tishomingo240770
Winston238084
Stone235338
Jasper234748
Attala228674
Chickasaw221460
Holmes202574
Clay201954
Clarke189580
Tallahatchie185642
Calhoun183232
Smith183036
Yalobusha173641
Walthall150449
Lawrence145426
Greene141935
Amite139144
Noxubee137235
Perry136138
Montgomery133944
Carroll127031
Webster124332
Jefferson Davis119834
Tunica116127
Benton107825
Claiborne105931
Kemper104429
Humphreys102333
Franklin88424
Quitman86319
Choctaw83119
Wilkinson79332
Jefferson72228
Sharkey51918
Issaquena1746
Unassigned00

Alabama Coronavirus Cases

Cases: 592417

Reported Deaths: 11542
CountyCasesDeaths
Jefferson861091591
Mobile49771865
Madison37714533
Shelby27501259
Tuscaloosa27344465
Montgomery26343628
Baldwin25860329
Lee17336181
Calhoun15498334
Morgan15225291
Etowah15060370
Marshall13198236
Houston12191293
Elmore10977219
St. Clair10852252
Limestone10816158
Cullman10610206
Lauderdale10305254
DeKalb9594192
Talladega9005188
Walker7840288
Autauga7615114
Jackson7431117
Blount7417139
Colbert6752142
Coffee6443132
Dale5723117
Russell482243
Chilton4810117
Covington4804125
Franklin462781
Tallapoosa4571156
Escambia451083
Chambers3987125
Dallas3751163
Clarke372263
Marion3470107
Pike334079
Lawrence3277100
Winston300773
Bibb292865
Geneva288383
Marengo262967
Barbour253761
Pickens247762
Butler242472
Hale236778
Fayette228165
Henry216545
Monroe204541
Randolph202844
Cherokee200748
Washington186839
Macon171552
Crenshaw170658
Clay167159
Cleburne161845
Lamar151938
Lowndes146255
Wilcox132331
Bullock126542
Conecuh122132
Coosa119529
Perry111228
Sumter110633
Greene99337
Choctaw64425
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Thursday will start off once again in the unseasonably cool 60s. We will top off just a few degrees warmer on out Thursday, in comparison to our Wednesday. Most of the high temperatures will be in the lower 90s.
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