Did the Apple fall far from the tree ?
Today's Fun Fact
Mobile phones are dirtier than handles.
Here's what you need to know before the US markets open.
What to expect in today's market 🕒
Royal Bank Of Canada Earnings (RY)
Snowflake Inc. Earnings (SNOW)
National Steel Company Earnings (SID)
Victorias Secret & Co. Earnings (VSCO)
Frontline Ltd Earnings (FRO)
National Energy Services Reunited Corp. Earnings (NESR)
Amtech Systems Inc. Earnings (ASYS)
Apple: Take a bite
Elon Musk does not disappoint when expressing his opinions about anything. Case in point, Apple’s (AAPL) new tax of up to 30% charges for all purchases through its system and in-app transactions. Some have even gone to the extent of reporting it as Musk declaring war on the company.
What happened?
The Tesla owner claimed that Apple had removed Twitter from the App Store without providing a reason and added that the corporation had also ceased running advertisements on the social networking site. Musk claims Apple put pressure on Twitter to comply with its demands for content regulation. Many of Musk's supporters and followers have started a campaign on the website in support of "free speech" as a result of his tweets.
The shares of the IT behemoth have fallen as a result of the Apple vs Elon Musk controversy. The internet giant's stock price appears to be suffering as a result of the world's richest person's allegations.
In addition to this, the production of Apple products in China has been impacted by the country's escalating instability. The business issued a warning on November 6 that Covid restrictions at a Zhengzhou assembly factory were having a substantial negative impact on the ability to produce the iPhone 14 Pro and Pro Max versions. Since then, the issue has only become worse as a result of the lockdowns, which have contributed to an unprecedented degree of protests around the nation.
Investors had hoped that the sales mix would support iPhone revenue in the December quarter, but that is now in jeopardy.
What can be expected?
The company’s shares fell 2.6% on Monday. Most potential purchasers of the iPhone 14 Pro versions, according to analysts, will wait out the delays. Even then, some iPhone sales would probably be pushed into the March quarter. The recent delays in manufacturing prior to the holiday season are also worrying analysts.
With only an 18% decline year to date, the stock has outperformed its major tech competitors. Another analyst said that they estimate Apple now has significant iPhone shortages that could take off roughly at least 5% of units in the quarter and potentially up to 10% depending on the next few weeks in China around Foxconn production and protests.
JPMorgan relayed more concern but still expressed apprehension over the slowdown in China. “The ongoing challenges around delays in returning to a normal level of production at the Zhengzhou facility could limit the pace with which supply-demand equilibrium can be reached in the coming months, but supply appears to have rebounded from trough levels,” the firm wrote.
Will this be a short-term problem? Luckily gravity has no impact on the stock market.
Market Reaction
AAPL ended at $141.17, down 2.11%.
Newsworthy 📰
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Winner & Loser: Disney is the biggest winner — and loser — at the Thanksgiving box office (DIS -1.05%)
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