It was bad enough for consumer products giant Apple (NASDAQ:AAPL) when people thought it was having a crisis of originality. Now, the crisis has evolved into a crisis of sales. Apple reportedly cut a range of orders on several of its products. The market isn’t responding well to this, as Apple is down substantially in Tuesday afternoon’s trading.
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From MacBooks to AirPods to even Apple Watches, Apple is dialing back orders on much of its product line. The reason? Pretty much what you’d expect, according to reports from an Apple supplier manager. Demand is simply not there for these products. Amazingly, this demand cut comes just as supply finally managed to recover from the Zero Covid policy that hindered much of the Chinese economy for weeks.
Some are, unsurprisingly, questioning the validity of these reports. Especially given that Apple goods have multiple suppliers. Thus, how would any one supplier manager have insight into multiple brands? Others encourage not making a mountain out of a molehill. After all, we’ve just exited the holiday season. Demand for nearly any kind of consumer electronics will falter for a while; most everyone has what they want already and won’t be in any position to upgrade any time soon.
Meanwhile, analysts see little concern about this report. Analyst consensus calls Apple a Strong Buy. Moreover, with an average price target of $177.70, Apple stock enjoys a potential upside of 43.08%.
