HT TECH wants to start sending you push notifications. Click allow to subscribe

Apple’s share slide after coronavirus guidance warning

The drop in Apple’s stock is set to wipe nearly $30 billion off its market capitalization, just as it was inching closer to $1.5 trillion in value. The stock was trading down at $318.74

By: REUTERS
Updated on: Aug 20 2022, 19:31 IST
In late January, Apple had forecast $63 billion to $67 billion in revenue for the quarter ending in March. (REUTERS)
In late January, Apple had forecast $63 billion to $67 billion in revenue for the quarter ending in March. (REUTERS)

Shares of Apple Inc fell 2 % on Tuesday and dragged the stocks of its suppliers across the globe lower, after the iPhone maker warned of lower sales in the current quarter acknowledging that the coronavirus outbreak was pressuring its supply chain.

The drop in Apple's stock is set to wipe nearly $30 billion off its market capitalization, just as it was inching closer to $1.5 trillion in value. The stock was trading down at $318.74.

You may be interested in

Mobiles Tablets Laptops
2% OFF
Apple iPhone 15 Pro Max 1TB
  • Black Titanium
  • 8 GB RAM
  • 1 TB Storage
₹196,900₹199,999
Buy now
Apple iPhone 15 512GB
  • Black
  • 6 GB RAM
  • 512 GB Storage
₹109,900
Buy now
9% OFF
Apple iPhone 15 Plus 256GB
  • Black
  • 6 GB RAM
  • 256 GB Storage
₹90,990₹99,900
Buy now
18% OFF
Apple iPhone 12
  • Black
  • 4 GB RAM
  • 64 GB Storage
₹53,999₹65,900
Buy now
Apple MacBook Pro M1 Max MK1A3HN A Ultrabook
  • Space Grey
  • 32 GB RAM
  • 1 TB SSD
₹319,900
Buy now
Apple MacBook Pro 16 Ultrabook
  • Space Grey
  • 16 GB DDR4 RAM
  • 1 TB SSD
₹249,900
Buy now
6% OFF
Apple MacBook Pro M3 MR7J3HN A Ultrabook
  • Silver
  • 8 GB RAM
  • 512 GB SSD
₹159,699₹169,900
Buy now
Apple MacBook Pro M2 MNEH3HN A Ultrabook
  • Space Grey
  • 8 GB RAM
  • 256 GB SSD
₹100,000
Buy now
3% OFF
Apple iPad Pro 12 9 2022 WiFi 2TB
  • Silver
  • 16 GB RAM
  • 2 TB Storage
₹216,191₹222,900
Buy now
3% OFF
Apple iPad Pro 11 2022 WiFi 1TB
  • Silver
  • 16 GB RAM
  • 1 TB Storage
₹147,328₹151,900
Buy now
3% OFF
Apple iPad Pro 12 9 2022 WiFi plus Cellular 256GB
  • Silver
  • 8 GB RAM
  • 256 GB Storage
₹133,750₹137,900
Buy now
3% OFF
Apple iPad Pro 11 2022 WiFi plus Cellular 512GB
  • Silver
  • 8 GB RAM
  • 512 GB Storage
₹123,081₹126,900
Buy now

However, several Wall Street brokerages dubbed Apple's update forecast as a "near-term headwind," saying the company is performing strongly outside China and the launch of 5G phones later this year would further boost sales.

Also read: Looking for a smartphone? To check mobile finder click here.

"We believe any material weakness in Apple shares as a result of the March 20 quarter revenue shortfall will prove to be a buying opportunity," analysts at Piper Sandler wrote in a client note.

"The iPhone supply constraints in the current quarter could result in pent-up demand for future quarters," they said.

In late January, Apple had forecast $63 billion to $67 billion in revenue for the quarter ending in March. It did not provide a new revenue estimate or a profit forecast on Monday.

Venture capital firm Loup Ventures expects March quarter revenue to be in the range of between $58 billion and $60 billion, with a 12% contribution from Greater China.

Manufacturing plants in China that produce Apple's iPhone and other electronics have begun to reopen, but they are ramping up more slowly than expected, Apple said on Monday. That will mean fewer iPhones available for sale.

One of the primary iPhone manufacturing facilities in China is operating at a 25% factory utilization rate as many workers remain absent, Cowen analysts estimated.

ALSO READ: Tim Cook outlines Apple's 'slower return to normal' in memo to staff

"We believe utilization rates will improve linearly over the next several weeks to ~50% by mid-March and followed by a big improvement in late March to normal levels."

Brokerage Canaccord Genuity expects Apple to sell 38 million iPhone units during the current quarter, eight million less from its earlier estimate.

Shares of Apple suppliers Taiwan Semiconductor Co Ltd, Qualcomm Inc, Intel Corp, Broadcom Inc, Texas Instruments Inc, Micron Technology Inc, Microchip Technology Inc and Qorvo Inc, fell between 1% to 3% in premarket trading.

Shares of European chipmakers STMicroelectronics NV and Dialog Semiconductor were down in the low single digits and Asian supplier Foxconn Technology Co Ltd was down marginally.

Follow HT Tech for the latest tech news and reviews , also keep up with us on ,Twitter, Facebook, , and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 19 Feb, 09:10 IST

Sale

Mobiles Tablets Laptops
5% OFF
Apple iPhone 11 Pro Max 256GB
  • Gold
  • 4 GB RAM
  • 256 GB Storage
₹137,990₹144,900
Buy now
7% OFF
Apple iPhone X 256GB
  • Silver
  • 3 GB RAM
  • 256 GB Storage
₹92,999₹99,900
Buy now
10% OFF
Apple iPhone 6s Plus 128GB
  • Gold
  • 2 GB RAM
  • 128 GB Storage
₹80,990₹89,900
Buy now
14% OFF
Apple iPhone 6s 128GB
  • Gold
  • 2 GB RAM
  • 128 GB Storage
₹51,790₹59,900
Buy now
3% OFF
Apple iPad Pro 12 9 2021 WiFi plus Cellular 512GB
  • Silver
  • 8 GB RAM
  • 512 GB Storage
₹153,100₹157,900
Buy now
3% OFF
Apple iPad Pro 11 WiFi Cellular 512GB
  • Silver
  • 4 GB RAM
  • 512 GB Storage
₹123,081₹126,900
Buy now
3% OFF
Apple iPad Pro 11 WiFi 512GB
  • Silver
  • 4 GB RAM
  • 512 GB Storage
₹108,532₹111,900
Buy now
15% OFF
Apple iPad Air 2020
  • Space Gray
  • 4 GB RAM
  • 64 GB Storage
₹50,999₹59,900
Buy now
4% OFF
Apple MacBook Pro M2 Pro MNW93HN A Ultrabook
  • Natural Silver
  • 16 GB RAM
  • 1 TB SSD
₹279,490₹289,900
Buy now
10% OFF
Apple MacBook Pro MPXU2HN A Ultrabook
  • Silver
  • 8 GB RAM
  • 256 GB SSD
₹144,539₹160,000
Buy now
4% OFF
Apple MacBook Pro M2 Pro MNWD3HN A Ultrabook
  • Silver
  • 16 GB RAM
  • 1 TB SSD
₹279,490₹289,900
Buy now
10% OFF
Apple MacBook Pro M1 MYDC2HN A Ultrabook
  • Silver
  • 8 GB RAM
  • 512 GB SSD
₹144,539₹160,000
Buy now