Due to Supply Issues With The iPhone 14 Pro, Apple’s Stock Fell to An 18-Month Low this Week

This week’s stock market decline and issues with iPhone supply caused Apple’s shares to reach an 18-month low. The closing price of Apple’s stock on Wednesday was $126.04, its lowest level since June 2021, and is still within that range.

Due to Supply Issues With The iPhone 14 Pro, Apple's Stock Fell to An 18-Month Low this Week

Foxconn, Apple’s manufacturing partner, has experienced limitations in iPhone production over the past few months due to COVID-19-related issues. Workers at Foxconn’s primary iPhone factory in Zhengzhou, China, protested last month over unfavorable working conditions brought on by COVID-19 limitations. While the Chinese government has since begun to loosen some restrictions, Foxconn is experiencing a labor shortage due to the virus’s increased spread.

Apple issued a rare public alert last month, warning that due to restrictions at Foxconn, shipments of the iPhone 14 Pro and iPhone 14 Pro Max would be lower than expected.

Foxconn’s factory’s capacity utilization rate, according to Taiwanese research firm TrendForce, has yet to reach 70% since the production problems started. Due to the stronger demand for the iPhone 14 Pro and iPhone 14 Pro Max, the situation has primarily affected those models, causing shipping delays of several weeks. Apple’s online store has the standard iPhone 14 and iPhone 14 Plus models in stock.

Due to Supply Issues With The iPhone 14 Pro, Apple's Stock Fell to An 18-Month Low this Week

TrendForce predicts that the iPhone production issues will persist into early 2023 and has reduced its iPhone shipment forecast for all models to 47 million units in the first quarter of the year, down from 52 million, due to COVID-19-related issues, economic uncertainty, and the upcoming week-long Chinese New Year holiday.

Earlier this year, Apple briefly reached a $3 trillion valuation. The company’s market capitalization is still closer to the $2 trillion threshold.