There’s a double shot of news for Apple (NASDAQ:AAPL) stock today, but it’s not positive. First of all, it looks like Apple’s rollout of autonomous vehicle will happen later than previously expected. On top of that, analysts with Morgan Stanley also lowered their iPhone production forecast — and it’s not the first time they’ve done so.
Bloomberg just broke a story concerning Apple’s self-driving electric vehicle (EV) project, known as Project Titan. Apparently, this project isn’t necessarily moving ahead as originally planned.
Previously, Bloomberg reported that Apple planned to launch an EV with full self-driving capabilities as early as 2025. In an update, however, it appears that the company’s target launch for this type of vehicle is being postponed to at least 2026.
Moreover, the vehicle’s design may be less ambitious than previously envisioned. Specifically, it may only support fully autonomous operation on highways. Additionally, the new vehicle might include a steering wheel and pedals. Apple’s prior plan for an autonomous EV would ideally have eliminated the need for a steering wheel and pedals.
What’s Happening With AAPL Stock?
AAPL stock declined this morning, but only by 1% or 2%. That’s a muted reaction, considering that the self-driving vehicle news isn’t the only potentially negative development.
This morning, traders also found out that Morgan Stanley analysts cut their iPhone production estimates for the second time over the past month. Evidently, these analysts lowered their estimates because they’re seeing a “slower ramp up in production” at Foxconn’s plant located in Zhengzhou, China.
As you may recall, workers protested at this production facility in November over China’s stringent Covid-19 policies. So, it’s understandable for analysts to expect problems at the Foxconn plant.
In any event, Morgan Stanley analyst Erik Woodring now expects Apple to ship 75.5 million iPhones during this year’s fourth quarter. His prior estimate had been for 78.5 million shipments. This, along with the delayed self-driving vehicle rollout target, is clearly causing anxiety among some AAPL stock investors today.
On the date of publication, David Moadel did not hold (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.
