Apple shares (AAPL) fell 0.55% to $ 245.52 yesterday. The decrease is attributed to the report which emphasizes that the company plans to delay the launch of the iPhone 12
Apple Inc. (NASDAQ: AAPL) stock fell 0.55% to trade at $ 245.52 on Wednesday after a report by Nikkei Asian Review said that Apple was preparing the ground to possibly delay the launch of his iPhone. The publication went on to cite that the delay is due to the ongoing coronavirus pandemic which poses a huge threat to global demand. In addition, it also disrupts the company’s product development schedules.
As a result, at 4:57 p.m. EDT on March 25, the stocks showed signs of continuing the downward trend that has dominated the stock for the past two months. Apple Stock (AAPL) canceled out all gains made in the last quarter of 2019. After retesting a major support level at $ 220, the share price could consolidate if the recovery plan against coronaviruses comes into effect. game to save the market as a whole.
At the time of writing, in the pre-commercial market, the AAPL share is down and has reached the level of $ 243.00 (-1.03%).
Apple’s sick coronavirus, its iPhone and AAPL Stock plans
Apple has its supply chain primarily in China, with assembly plants benefiting from the supply of Chinese human resources. However, since the appearance of a new coronavirus, daily operations have been significantly interrupted. As local Chinese authorities rushed to lock down the most affected areas, many multinational companies were closed for weeks.
This has significantly hampered Apple’s dates because it has a tradition of launching a new product every year as the last quarter approaches. The iPhone 12 and other products supposed to support the 5G network were to be launched in September or October. However, this may not be possible due to all the factors at play, with the company considering several months to launch the product.
It will be a major blow to the company, which competes with other major cellphone manufacturers like Samsung, which already unveiled its flagship products earlier this year. Since the company advised its employees to work remotely, the delay may not be inevitable.
A similar forecast of the product’s delay was made by JPMorgan analyst, who predicted that Apple could consider a month or two late in launching the new iPhone. Apple received a huge blow to the supply chain as it fell more than 38% year over year in February, according to research firm Strategy Analytics.
With the coronavirus now gaining popularity in the United States and Europe, where it dominates a huge market, unless the company becomes innovative, more downward volatility may be inevitable.
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