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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.

Confirmed Cases: 29684

Reported Deaths: 1103
CountyConfirmedDeaths
Hinds238239
DeSoto148616
Madison126734
Jones110449
Neshoba98171
Lauderdale90079
Rankin88812
Forrest85142
Harrison84210
Scott76215
Copiah59216
Jackson58416
Leake57019
Holmes54441
Wayne53513
Lee53218
Oktibbeha53226
Washington5319
Warren49618
Yazoo4936
Leflore48049
Lowndes47212
Lincoln44334
Lamar4407
Grenada4325
Pike40712
Monroe38830
Lafayette3774
Attala35823
Sunflower3467
Newton3389
Covington3345
Panola3256
Bolivar32114
Adams29318
Simpson2833
Pontotoc2736
Marion27011
Tate2709
Chickasaw26918
Claiborne25610
Jasper2566
Winston2546
Noxubee2538
Pearl River24832
Clay24710
Marshall2173
Smith21611
Clarke20524
Coahoma1916
Union1919
Walthall1804
Kemper17714
Lawrence1701
Yalobusha1677
Carroll16411
Itawamba1348
Humphreys1329
Calhoun1284
Tippah12811
Hancock12613
Webster12610
Montgomery1242
Tallahatchie1224
Jefferson Davis1094
Prentiss1023
Greene1018
Jefferson993
Tunica933
Wilkinson929
Amite892
George783
Tishomingo741
Quitman730
Choctaw724
Perry654
Alcorn631
Stone571
Franklin412
Sharkey340
Benton300
Issaquena91
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 41362

Reported Deaths: 983
CountyConfirmedDeaths
Jefferson4802152
Montgomery3947103
Mobile3904134
Tuscaloosa218842
Marshall168010
Lee130237
Madison12717
Shelby117623
Morgan10475
Walker90524
Franklin87814
Dallas8689
Elmore86414
Baldwin8289
Etowah70713
DeKalb6945
Butler62328
Chambers61227
Tallapoosa58369
Autauga56012
Russell5190
Unassigned50323
Lauderdale4736
Limestone4660
Lowndes46321
Houston4614
Cullman4354
Pike4175
Colbert3836
Coffee3702
Bullock3679
St. Clair3472
Barbour3452
Covington3437
Escambia3326
Calhoun3225
Hale30621
Marengo30011
Talladega3007
Wilcox2898
Sumter28412
Clarke2726
Dale2680
Jackson2632
Winston2463
Monroe2312
Chilton2282
Blount2261
Pickens2226
Marion21413
Randolph2019
Conecuh1977
Choctaw19512
Bibb1861
Greene1838
Macon1819
Perry1621
Henry1313
Crenshaw1253
Lawrence1050
Washington1047
Cherokee857
Geneva780
Lamar751
Fayette671
Clay622
Coosa581
Cleburne361
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