Topline
Shares of Apple closed down almost 2% on Tuesday following an analyst report from Hong Kong-based TF International Securities that said iPhone shipments will drop up to 15% year-over-year in 2024, adding Apple could experience one of the more significant declines among top phone brands this year.
The Apple logo is displayed at the Apple Store June 17, 2015 on Fifth Avenue in New York City. ... [+]
Key Facts
Apple shares closed at $188.04 on Tuesday, continuing a consistent decline the company’s stock has experienced since Jan. 24, when it closed at $194.50.
Tuesday’s 1.9% drop outpaced the decline of the tech-heavy Nasdaq, which declined just shy of 0.8%.
Tuesday’s drop came amid the report from TF International Securities that predicted iPhone shipments will be trimmed down to about 200 million units this year, a 15% decrease year-over-year.
The report attributed the figures to a supply chain survey that indicated “Apple lowered its 2024 iPhone shipments” of key semiconductor components—electronic pieces used in devices from phones and computers to vehicles and televisions.
TF International Securities also claimed smartphone maker Huawei’s return in the Chinese market, alongside rising popularity of foldable phones, will contribute to the shipment decline.
A lack of “significant design changes” with new iPhone models will also harm Apple’s shipping momentum, at least until 2025 at the earliest, the report added.
Apple didn’t immediately respond to Forbes’ request for comment.
What To Watch For
Apple will report its fourth quarter and annual earnings Thursday, with analysts expecting 0.6% revenue growth from last year to $117.9 billion, according to CNBC.
Tangent
Microsoft surpassed Apple as the most valuable public company earlier this month and continues to maintain a higher market capitalization ($3 trillion) than the iPhone maker ($2.9 trillion).
Key Background
Apple shares have largely increased in the past year after trading around $144 one year ago. The company’s latest smartphone, the iPhone 15, sold well at launch and managed to sell out on pre-orders. However, Apple’s other hardware divisions took notable hits recently including its MacBook computer, which experienced a 34% sales decline last quarter. Apple reported $67.2 billion in product sales last quarter, performing slightly under analysts forecasts.
Further Reading
Apple Beats Estimates For Quarterly Profit, Sales Even As Annual Profits Slide (Forbes)
