Shiftbackspace.com Latest News: Apple’s Stock are Getting Low

Apple stock drops nearly 5 percent on Wall Street on Monday, to its lowest level since July, on a background of concerns about sales of its new iPhone powered warnings on results from two of its suppliers.

The title, which rests on six consecutive weeks of decline, losing 4.6 percent to 195,10 dollars in the morning after a dip in $193,79. It is so close to its 200 days moving average ($193,24), a significant technical level

Lowering of forecasts

The manufacturer of sensors laser Lumentum Holdings, which provides Apple to components for face recognition Face ID of the iPhone system, lowered Monday its financial estimates for the second quarter of its fiscal year, evoking a big client who he has asked to reduce its deliveries significantly.

Three analysts are convinced that the customer in question is Apple and they believe that the new forecast of Lumentum corresponds to a decline in the production of iPhone in the order of 18-20 million units compared to the initial objectives.

Lumentum, which makes nearly a third of its turnover with Apple, has lost up to 31.5 percent in the early session on Wall Street, to its lowest level for two years, leading to the decline of other Apple suppliers and manufacturers of optical products such as II-VI, Acacia, NeoPhotonics, Viavi Solutions or Applied Optoelectronics.

In Europe, the suppliers of Apple, as the Austrian AMS, also were heavily penalized.

Drop in orders of iPhones

Earlier in the day, Japan Display, another provider of Apple, has reduced its forecast of annual results, citing the weak demand for smartphones.

Longbow Research indicates that quick checks last week point to a decline of 20% to 30% of orders of iPhone, affecting especially the XR and XS Max models, and added that the searches of the name iPhone on Baidu, the Chinese search engine, dropped from 55 percent in October, reflecting a possible decline in demand in China.

Last Monday, the Japanese daily Nikkei reported that Apple had informed Pegatron and Foxconn subcontractors they had to give up to increase the number of production lines dedicated to the Assembly of the XR iPhone, on sale since October.