Recent reports claim that Apple has reduced its iPhone production orders from 96 million units to 90 million units. With these reports comes damage to shares of suppliers of Apple’s iPhone 14 components, such as TSM stock.
Apple was hoping to see an increase in demand for its iPhone 14, which is why it was ordering more units. However, that demand didn’t come as expected. Now, the tech company is returning to its original estimates of 90 million units for 2022.
Bloomberg Intelligence analyst Marvin Chen said the following about the news to Bloomberg:
Disappointing iPhone demand may reverberate throughout the supply chain, and impact tech heavy Taiwan and Korea the most.
Macroeconomics Are Likely Affecting Demand
It’s also worth noting that Apple’s expected 90 million units for the iPhone 14 in 2022 match last year’s deliveries. So while demand isn’t increasing this year, the company also isn’t seeing a drop in demand, either.
Investors will keep in mind that macroeconomics could be affecting demand for Apple’s iPhone 14. The product is more of a luxury device, and luxury purchases typically take a hit during a recession, or as inflation increases.
TSM stock is down 2.2% as of Wednesday morning and is down 44.5% since the start of the year.
Investors seeking out the latest stock market news for today are in the right place!
We’ve got traders covered with all of that hottest stock market news they need to know about for Wednesday! A few examples of that include what has shares of Casava Sciences (NASDAQ:SAVA), Lyft (NASDAQ:LYFT), and MindMed (NASDAQ:MNMD) stock moving today. You can catch up on all of that news at the following links!
More Wednesday Stock Market News
- Why Is Cassava Sciences (SAVA) Stock Heating Up Today?
- LYFT Stock Alert: What to Know as Lyft Pumps the Brakes on Hiring
- Why Is MindMed (MNMD) Stock Plunging 51% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.