Apple sinks on fears of slowing iPhone sales

Apple's stock is as red as the n...

Posted: Apr 20, 2018 8:22 PM
Updated: Apr 20, 2018 8:22 PM

Apple's stock is as red as the newest version of the iPhone 8.

Shares of Apple fell more than 3% Friday, and they are now down nearly 5% this week. Apple's stock has given up its gains for the year.

Why has Apple suddenly turned sour? Growing fears that Apple will report sluggish iPhone sales when it releases its earnings on May 1.

Morgan Stanley's Katy Huberty slashed her iPhone shipment projections for the quarter ending in June on Friday, citing weakness in China. Canaccord Genuity's Michael Walkley also cut his iPhone sales forecasts and cut his earnings estimates for Apple too.

It doesn't help that the chief financial officer of a key Apple chip supplier -- Taiwan Semiconductor -- warned of "mobile softness" and "continued weak demand" when it reported earnings this week.

That's a big reason why shares of other semiconductor companies that make processors used in iPhones were hurting as well.

Shares of Qorvo, Skyworks Solutions and Cirrus Logic plunged this week, as did the broader Philadelphia Semiconductor Index.

It's possible that Apple's iPhone X, which does not have a home button, uses facial recognition and lacks a jack for headphones, may be a little too different for people used to iPhone upgrades being more evolutionary than revolutionary.

Most analysts cite weak iPhone X demand as the biggest problem for Apple.

Related: Apple memo warning employees about leaking info gets leaked

But the big question now for investors is whether Apple woes will be a drag on the broader market for the foreseeable future.

Apple is the most valuable company in the world, worth more than $840 billion. The drop in Apple's stock price Friday was one of the big reasons why the Dow, which Apple is a member of, fell more than 200 points. The broader S&P 500 and Nasdaq sank too.

Other big tech stocks also tumbled Friday. But interestingly enough, the other four of the so-called FAANG stocks are all still up for the week.

  • Facebook, which will report its latest earnings on Wednesday, has gained about 1% on hopes that the Cambridge Analytica data scandal did not lead to a mass defection of users and advertisers.

  • Amazon has soared more than 7% after the company announced a deal to sell Fire TV sets at Best Buy and said that it had more than 100 million Prime members. Amazon reports its earnings on Thursday.
  • Netflix surged 7% thanks to its latest earnings report. The company wowed Wall Street with better than expected subscriber growth in the US and internationally.
  • Google owner Alphabet is up 3.5%. It reports earnings on Monday. Analysts expect continued strength in its core search advertising business. Google may also benefit from iPhone softness if more consumers are buying phones running on Google's Android operating system.

So it looks like investors believe that, for now at least, one bad Apple shouldn't spoil the rest of the Big Tech bunch.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 42772

Reported Deaths: 1542
CountyConfirmedDeaths
Hennepin13697791
Ramsey5313234
Dakota275396
Stearns253619
Anoka2458111
Nobles16946
Washington130641
Olmsted130220
Mower9872
Scott8994
Rice8928
Clay62038
Kandiyohi5951
Blue Earth5862
Wright5475
Carver5002
Todd4042
Sherburne3725
Lyon3512
Freeborn3140
Watonwan2720
Steele2501
Benton2423
St. Louis23816
Nicollet20712
Martin1755
Winona15015
Cottonwood1420
Goodhue1428
Le Sueur1361
Crow Wing11512
Otter Tail1151
Pine1150
Chisago1111
McLeod1030
Dodge990
Carlton940
Polk903
Unassigned8838
Pipestone864
Isanti830
Murray830
Chippewa811
Waseca800
Itasca7612
Douglas740
Morrison691
Becker680
Meeker661
Faribault610
Jackson580
Sibley572
Beltrami550
Pennington540
Brown492
Wabasha430
Mille Lacs412
Renville373
Fillmore360
Rock350
Swift351
Grant320
Houston320
Yellow Medicine310
Roseau280
Lincoln250
Redwood250
Koochiching221
Wilkin223
Norman210
Cass202
Big Stone180
Kanabec181
Wadena180
Aitkin160
Marshall160
Clearwater150
Mahnomen131
Pope130
Stevens110
Hubbard100
Lake90
Traverse70
Lac qui Parle50
Red Lake50
Kittson20
Cook10
Lake of the Woods00

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 35534

Reported Deaths: 754
CountyConfirmedDeaths
Polk7611185
Woodbury334944
Black Hawk253459
Buena Vista173811
Johnson14878
Dallas141531
Linn141083
Marshall110019
Scott109810
Dubuque100023
Story8778
Pottawattamie84113
Wapello71631
Muscatine69545
Crawford6813
Sioux5050
Tama48829
Webster4295
Wright3991
Louisa36713
Jasper35717
Plymouth3535
Warren3371
Cerro Gordo3291
Dickinson3073
Washington2559
Hamilton2041
Boone1751
Clay1511
Clarke1453
Clinton1391
Allamakee1384
Mahaska11917
Shelby1190
Carroll1171
Bremer1167
Franklin1130
Poweshiek1128
Pocahontas1091
Des Moines1022
Emmet970
Cedar961
Henry933
Hardin920
Cherokee851
Marion840
Floyd822
Guthrie814
Taylor810
Benton781
Monona780
Jones741
Butler702
Osceola690
Sac680
Jackson670
Buchanan651
Calhoun652
Iowa631
Jefferson630
Hancock621
Harrison620
Lyon610
Humboldt601
Fayette590
Delaware581
Madison562
Lee542
Mills530
Palo Alto530
Monroe527
Clayton503
Winneshiek500
Grundy470
Mitchell470
Winnebago440
Davis431
Kossuth430
Union430
Howard370
Lucas354
Unassigned350
Chickasaw310
Greene310
Cass300
Worth270
Appanoose243
Keokuk241
Ida230
Page220
Van Buren211
Audubon181
Adair170
Ringgold161
Montgomery152
Decatur130
Fremont110
Wayne110
Adams80
Rochester
Broken Clouds
69° wxIcon
Hi: 78° Lo: 57°
Feels Like: 69°
Mason City
Broken Clouds
70° wxIcon
Hi: 83° Lo: 60°
Feels Like: 70°
Albert Lea
Overcast
70° wxIcon
Hi: 78° Lo: 57°
Feels Like: 70°
Austin
Broken Clouds
70° wxIcon
Hi: 80° Lo: 58°
Feels Like: 70°
Charles City
Scattered Clouds
70° wxIcon
Hi: 84° Lo: 62°
Feels Like: 70°
Slight Risk of Severe Storms Tuesday as a Cold Front approaches
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Getting Back to School physicals during the Pandemic

Image

'Cradle 2 Career' hosting discussion about race

Image

Dave's Main 6:30 Weather 7-14

Image

Sean's 10pm Weather 7/13

Image

Albert Lea council considers Covid response

Image

Rochester Police Policy Conversation

Image

Training the area's best basketball stars

Image

Pandemic Positive: A decline in air pollution

Image

Sen. Smith Highlights Health Inequalities

Image

School district weighs back to school options

Community Events