Apple shares fall the most in ten weeks on Thursday, iPhone 8 sales may disappoint, analysts suggest

According to sources of Taiwanese newspaper Economic Times, cited by Reuters, orders of Apple’s iPhone 8 could turn out to be 50% fewer, as its predecessor still remains popular among customers and also due to the keenly anticipated release of iPhone X.

Apple shares closed lower for a second consecutive trading session on Thursday. It has also been the steepest daily loss since August 10th. The stock went down 2.37% ($3.78) to $155.98, after touching an intraday low at $155.03, or a price level not seen since October 6th ($154.56).

In the week ended on October 15th the shares of the technological company added 1.09% to their market value compared to a week ago, which marked a third consecutive period of gains.

The stock has pared its advance to 1.21% so far during the current month, following a 6.02% slump in September. The latter has been the first drop in three months and also the sharpest one since April 2016.

For the entire past year, the shares of the NASDAQ-listed company rose 10.03%. The stock has gained another 34.67% so far in 2017.

Some analysts suggest that Apple may shift its focus towards iPhone X, a device with a radically new look which will be priced at $999, as it may facilitate a boost of the tech giant’s margins.

“Our research suggests the production mix was 50/50 between iPhone 8/8 Plus and the iPhone X, but iPhone X allocation could shift up to 60-70 percent in December and even more in the March quarter”, Rosenblatt Securities analyst Jun Zhang wrote in a client note, cited by Reuters.

However, there have been other opinions as well.

“We think the market could have over-focused on the production swing in different SKUs, but overlooked that the overall iPhone production is largely on track”, Deutsche Bank analysts wrote.

“We still expect Hon Hai, Pegatron and Wistron to account for 68%-70%, 24%-26% and 5%-6% of total production in 4Q17 (similar to 3Q17). Pegatron and Wistron should take more iPhone 8/8Plus orders, while Hon Hai is shifting its resource to iPhone X”, they added, referring to different Taiwanese suppliers.

Pre-orders of Apple’s iPhone X are expected to begin on October 27th, while the device is to be shipped from November 3rd.

According to CNN Money, the 32 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $180.00, with a high estimate of $208.00 and a low estimate of $140.00. The median estimate is a 15.40% surge compared to the closing price of $155.98 on October 19th.

The same media also reported that 24 out of 37 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 7 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Apple stock are presented as follows:

R1 – $156.17
R2 – $156.35
R3 (Range Resistance – Sell) – $156.54
R4 (Long Breakout) – $157.10
R5 (Breakout Target 1) – $157.76
R6 (Breakout Target 2) – $158.03

S1 – $155.79
S2 – $155.61
S3 (Range Support – Buy) – $155.42
S4 (Short Breakout) – $154.86
S5 (Breakout Target 1) – $154.20
S6 (Breakout Target 2) – $153.93

By using the traditional method of calculation, the weekly levels of importance for Apple Inc (AAPL) are presented as follows:

Central Pivot Point – $156.70
R1 – $158.29
R2 – $159.60
R3 – $161.19
R4 – $162.79

S1 – $155.39
S2 – $153.80
S3 – $152.49
S4 – $151.19