Why Apple Suffered A Concerning Stock Market Setback
Apple's stock to a noticeable dip due to issues that have arisen following the release of its iPhone 14.
Apple stock unexpectedly dipped this week, with some investors concerned about the iPhone 14’s sales. Shares for Apple stock dropped by 4% on Wednesday, signaling a market unease for the established tech company. Many suspect the market pivot may come from Apple’s abandonment of increasing iPhone 14 production and the underwhelming demand for the new product.
After the release of its latest iPhone upgrade, the tech company decided to scrap plans for six million more units produced in the latter half of 2022. This decision came after the iPhone 14 had less demand than Apple expected, obstructing its predetermined rollout initiatives. Now that it’s publically known that the iPhone 14s sold less than anticipated, the stock market adjusted accordingly.
Many blame the lack of success for the iPhone 14 on its general upgrades. The iPhone 14 isn’t dissimilar from past smartphone releases, with small features updated in the phone’s software. Though customers love a new Apple product, the minimalist approach to the latest iPhone may have sabotaged the usual consumer demand.
Some critical changes to the iPhone 14 is the newest “Dynamic Island” tool located at the top of the screen. The interactive tool showcases rotating notifications on your phone, including what music is playing, battery life, emails, and more. The most significant change to these smartphones is the always-on lock screen display, already utilized by Android phones.
Unfortunately for Apple, people in this economy are more frugal and aren’t looking to upgrade their phones often. Especially since the iPhone 14 has no drastic changes, consumers nowadays are less likely to update their smartphones to devices that cost up to $1,000 each. Sadly, Apple’s minor tweaks for the latest iPhone aren’t enough to convince financially crunched Americans that they need the company’s latest technologies.
Ben Wood, an analyst at CCS Insight, told CNN that though Apple has had extensive preorders for the iPhone 14, the tech company is not impervious to the devastating economic climate. Wood blamed the “broader macro-economic pressures” rather than the company’s minimal iPhone redesign, adding that many tech corporations suffer under similar financial circumstances. Apple’s sudden reduction in iPhone manufacturing aligns with the unease of the general marketplace.
Unfortunately for Apple, this isn’t the only news that paints the company in a negative light. A controversial video of a top executive at Apple was posted on Tiktok on September 5th. Tony Blevins, the senior executive in question, was featured on Instagram creator Daniel Ma’s TikTok, where he asks wealthy executives about their expensive cars.
Though the TikTok series is relatively innocuous, Blevins decided to talk about women unprofessionally ins his video, veering into sexual harassment language and general misconduct. After TikTok went viral, Blevin’s team investigated the incident, ultimately leading to his removal. Since the incident, Blevins has apologized for his behavior and explained that this insensitive language was an attempt at being humorous.
Blevis worked at Apple for 22 years as the vice president of procurement, working with other companies to gather suppliers and formulate partnerships. Before his departure, he was one of 30 people that directly reported to Apple CEO Tim Cook and Chief Operating Officer Jeff William.
