How will Semiconductor Crisis affect Apple?

How will Semiconductor Crisis affect Apple?

2021-10-13 • Updated

What happened?

Apple may cut iPhone 13 production by 10 million units this year due to global chip shortages. The company expected to produce 90 million new iPhone models in the last three months of 2021, but the total volume will now be lower due to problems with the supply of sufficient parts from Broadcom and Texas.

How will It affect the stock price?

Investors are worried about a possible decrease in revenue from the sale of iPhones. The price has been sliding since the beginning of September and now Apple stock is trading around $140.

in fact, the company never posted high revenue in the third quarter. We will see the results in the sales failure only at the end of the fourth quarter of 2021.

Moreover, FAANG shares are under pressure due to the expected rise in US inflation. Taken together, these factors led to the decline in the stock, however, we do not believe this negative will last any longer.

Technical analysis

4H chart

APPLEDaily.png

Apple stock is trading in the rising channel. Now it is heading towards the bottom line. According to the RSI, bears are running out of power, so we believe a reversal might happen soon. The 200-day moving average is the strongest support and our first potential entry point. Also, the price can reverse out of $139 and draw a double bottom pattern. In this case, the best entry point will be as the price breaks through the high between two bottoms.

TRADE NOW

Similar

Walmart earnings outlook
Walmart earnings outlook

Walmart is one of the biggest retail corporations in the US, with $244 billion in total assets. Does it worth buying amid rising prices and supply concerns that shatter the world economy?

Best Stocks to Trade This Earnings Season
Best Stocks to Trade This Earnings Season

There is a period every stock trader loves the most due to significant movements, increased volatility, and, possibly, big gains. Open your trading apps and be ready to act! Earnings season comes four times a year and we crave to share our expectations with you.

Best Stocks to Buy in April! 
Best Stocks to Buy in April! 

As April approaches, investors are searching for good opportunities in the stock market. There are two booming industries that look positive in the coming period; electric vehicle (EV) stocks and banking stocks.

Latest news

US Stock Market Recovers
US Stock Market Recovers

What happened? US stocks ended sharply higher on Thursday, May 27, after a 7-week losing streak…

What to trade on May 30-June 3
What to trade on May 30-June 3

Next week, we expect the BOC rate statement, the OPEC+ meeting, and the Nonfarm payrolls release. Let's look at the opportunities in detail! 

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera