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.

Huntsville/Redstone
Partly Cloudy
43° wxIcon
Hi: 62° Lo: 34°
Feels Like: 43°
Muscle Shoals
Partly Cloudy
49° wxIcon
Hi: 65° Lo: 32°
Feels Like: 49°
Huntsville/Madison
Partly Cloudy
42° wxIcon
Hi: 62° Lo: 31°
Feels Like: 42°
Decatur
Partly Cloudy
43° wxIcon
Hi: 64° Lo: 34°
Feels Like: 43°
Fort Payne
Partly Cloudy
38° wxIcon
Hi: 62° Lo: 32°
Feels Like: 38°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Cases: 524367

Reported Deaths: 10807
CountyCasesDeaths
Jefferson756511496
Mobile40258800
Madison34165498
Tuscaloosa25448445
Montgomery24089574
Shelby23250243
Baldwin20787302
Lee15670166
Calhoun14375313
Morgan14180274
Etowah13716348
Marshall12022220
Houston10427279
Elmore10011202
Limestone9873149
Cullman9512191
St. Clair9508236
Lauderdale9293234
DeKalb8774183
Talladega8131173
Walker7153277
Autauga6793107
Jackson6772110
Blount6556133
Colbert6240132
Coffee5435113
Dale4780111
Russell432139
Franklin421882
Chilton4153110
Covington4084116
Tallapoosa3943149
Escambia390375
Dallas3529150
Chambers3526122
Clarke347660
Marion3084100
Pike306776
Lawrence297696
Winston273272
Bibb256961
Marengo248461
Geneva246475
Pickens233359
Barbour228455
Hale219175
Butler214068
Fayette210560
Henry188344
Cherokee182945
Randolph178741
Monroe174040
Washington165838
Macon156849
Clay150956
Crenshaw149957
Cleburne147141
Lamar139834
Lowndes137853
Wilcox125427
Bullock122140
Conecuh109828
Perry107626
Sumter103332
Coosa100928
Greene91534
Choctaw59024
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Cases: 837833

Reported Deaths: 12111
CountyCasesDeaths
Shelby933421591
Davidson88250926
Knox49926625
Hamilton43501488
Rutherford42422423
Williamson27589215
Sumner23549345
Montgomery19740224
Wilson18547229
Out of TN1797995
Unassigned16778133
Sullivan16266287
Blount15213194
Bradley14670148
Washington14243244
Maury13261170
Sevier13204175
Putnam11193173
Madison10853241
Robertson9627129
Anderson8639171
Hamblen8522171
Greene7746152
Tipton7235104
Coffee6833121
Dickson6740109
Cumberland6586128
Carter6487156
Bedford6439129
Gibson6410144
McMinn637897
Roane6197102
Jefferson6089124
Loudon602469
Lawrence582086
Hawkins5802106
Monroe572495
Warren551881
Dyer5371104
Franklin509488
Fayette493678
Obion450396
Cheatham445954
Cocke444298
Rhea431575
Lincoln430963
Marshall412358
Campbell410562
Weakley403763
Giles396299
Henderson373276
Macon358677
Carroll357782
White356269
Hardin350566
Hardeman346764
Lauderdale314444
Henry312675
Marion310846
Claiborne307373
Scott305745
Overton298161
Wayne294434
Hickman280746
McNairy277254
DeKalb275753
Smith275238
Haywood268461
Grainger259649
Trousdale249122
Morgan246339
Fentress238446
Johnson232238
Bledsoe210111
Chester209651
Crockett201548
Polk200324
Unicoi195249
Cannon189231
Union186534
Grundy178433
Humphreys174622
Lake169626
Sequatchie167028
Benton163440
Decatur157538
Lewis156626
Meigs135124
Stewart131028
Jackson130035
Clay109431
Houston108633
Perry105728
Moore100217
Van Buren83622
Pickett75724
Hancock55712

Community Events