Apple shares fall the most in a week on Monday, tech company slashes production orders for all new iPhones

According to a report by the Wall Street Journal on Monday, citing people with knowledge of the matter, production orders for all three models of iPhones, which Apple Inc unveiled in September, have been reduced by the tech company in recent weeks.

Apple shares closed lower for the sixth time in the past ten trading sessions on NASDAQ on Monday. It has also been the steepest daily loss since November 12th. The stock went down 3.96% ($7.67) to $185.86, after touching an intraday low at $185.04, or a price level not seen since July 5th ($184.28).

Shares of Apple Inc have surged 9.83% so far in 2018 compared with a 0.64% gain for the benchmark index, S&P 500 (SPX).

In 2017, Apple’s stock gained 46.11%, thus, it again outperformed the S&P 500, which registered a 19.42% return.

According to the WSJ, a lower-than-anticipated demand for the latest iPhone models coupled with the tech giant’s decision to increase model offerings has made it harder to project how many components and handsets Apple requires for its production.

The same media also said Apple had reduced its production plan for iPhone XR by up to one third of the almost 70 million components, which several suppliers had already been asked to manufacture between September and February.

Apple Inc launched its latest generation of phones such as the iPhone XS and iPhone XS Max in September, while its iPhone XR was introduced in October.

According to CNN Money, the 33 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $240.00, with a high estimate of $310.00 and a low estimate of $165.00. The median estimate represents a 29.13% upside compared to the closing price of $185.86 on November 19th.

The same media also reported that 22 out of 41 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 15 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

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

Central Pivot Point – $193.10
R1 – $200.28
R2 – $207.02
R3 – $214.20
R4 – $221.37

S1 – $186.36
S2 – $179.18
S3 – $172.44
S4 – $165.69

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