Apple asks suppliers to cut component supply, stock price plummets, market value falls below $2 trillion

Affected by the global economic downturn, people’s enthusiasm for purchasing digital products has also been greatly reduced, and some not particularly important products can be bought if they can’t buy them. Last year, the sales of Apple’s series of products fell short of expectations, and Apple’s market value evaporated a lot, and its stock price fell. Due to weak demand, Apple continued to cancel parts orders from suppliers at the beginning of the year, causing the stock price to continue to fall.

Apple had a lot of twists and turns last year. Affected by Foxconn’s resumption of production capacity, the production capacity of iPhone 14 and iPhone 14 Pro has been reduced, and Apple’s supply chain has been hit. China and Japan are the largest sales markets for Apple, but demand is insufficient and sales are weak. Japanese consumers have always been keen to buy the latest electronic products. The yen has continued to plummet under the strong dollar. People cannot afford new iPhones. The Japanese second-hand market is booming. The market demand is sluggish, and Apple’s demand has shrunk. Some parts orders have to be canceled. Only TSMC’s Apple high-end chips A15 and A16 have cut orders by nearly half.

According to the situation in previous years, after the launch of new iPhone products, Apple will gradually negotiate prices with component suppliers to reduce costs. Now it’s another off-season for traditional mobile phones. In addition, the current market is weak and the demand is not strong. In the next step, maybe Apple should consider bargaining the supply chain again.