Weak demand for MacBook, Apple Watch, AirPods may have caused order cuts

Posted:
in General Discussion edited January 3
Sources in China say Apple has reduced its orders from suppliers for almost all of its products, and the news has seen AAPL shares drop.

Apple CEO Tim Cook at a Foxconn factory.
Apple CEO Tim Cook at a Foxconn factory.


Apple shares had risen on the news that production in Foxconn's major iPhone plant in Zhengzhou is back to 90% capacity. However, a new report about Apple cutting orders has seen the company fall 3.55% on NASDAQ.

According to Nikkei Asia, the supply chain in China was struggling as the local authorities relaxed their severe COVID lockdowns and allowed factories to reopen. Then came the reduction in orders.

"Apple has alerted us to lower orders for almost all product lines actually since the quarter ending December," a source said to be an Apple supplier manager, told the publication, "partly because the demand is not that strong."

"The supply chain in China is still trying to cope with the latest abrupt policy turns," continued the source, "which brought a shortage of laborers because of the sharp COVID surges."

Reportedly, Apple has specifically cut its orders for AirPods, Apple Watch, and MacBooks, for the first quarter. It's not know by how much the orders have been reduced.

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Comments

  • Reply 1 of 29
    MadbumMadbum Posts: 410member
    Nikkei Asia and that reporter is a paid mouth piece for Apple short sellers. Yes they get away with this stuff in Asia.

    That report is faulty given AirPods , watch and MacBook have completely different supply chains so one “anonymous” supply chain manager in China would not have that information.
    jas99rob53JFC_PAaderutterracerhomie3lkrupptwokatmewfreeassociate2radarthekatbyronl
  • Reply 2 of 29
    DAalsethDAalseth Posts: 2,556member
    Let’s see, after the xmas rush, there’s usually a big drop in orders for the beginning of the year. Wonder if that might have anything to do with it. That is if this is even true. Supply Chain rumours are mostly trash anyway.
    jas99rob53jesusfreakfirelocktwokatmewradarthekatusmccopbyronl
  • Reply 3 of 29
    I doubt anything will change, but Apple’s pricing policy is not in keeping for folks faced with increased heating bills, increased prices and wages not keeping pace with any of it. All of my previously comfortable Apple subs are under review. I’m making do with my older phone for another year. Much coveted AirPods Max are a no-go for the foreseeable*. Etc.

    *First world problems, I know
    n2itivguyjesusfreakwilliamlondontwokatmewbageljoeygatorguy
  • Reply 4 of 29
    looplessloopless Posts: 281member
    Madbum said:
    Nikkei Asia and that reporter is a paid mouth piece for Apple short sellers. Yes they get away with this stuff in Asia.

    That report is faulty given AirPods , watch and MacBook have completely different supply chains so one “anonymous” supply chain manager in China would not have that information.
    Totally agree, some people made substantial gains off this unsubstantiated report that was probably leaked to the short sellers ahead of time. As soon as you  said 'Nikkei Asia' it was pretty obvious.
    edited January 3 jas99MadbumJFC_PAaderuttertwokatmewgilly33
  • Reply 5 of 29
    YaBoiNickYaBoiNick Posts: 2unconfirmed, member
    With regards to Macbook sales, I think Apple is a victim of their own success here; there’s no longer a need to update your laptop as frequently as you might have otherwise done as it’ll do everything you want much cooler and for longer than the Intel processors, so they’ll be used for longer.
    fred1williamlondontwokatmew9secondkox2
  • Reply 6 of 29
    rob53rob53 Posts: 3,087member
    I doubt anything will change, but Apple’s pricing policy is not in keeping for folks faced with increased heating bills, increased prices and wages not keeping pace with any of it. All of my previously comfortable Apple subs are under review. I’m making do with my older phone for another year. Much coveted AirPods Max are a no-go for the foreseeable*. Etc.

    *First world problems, I know
    Totally understand and I’m feeling the pain too. Apple’s pricing is due to a messed up world, something that isn’t going to change quickly. 
    jesusfreaktwokatmewTheSparklegatorguy
  • Reply 7 of 29
    MadbumMadbum Posts: 410member
    I doubt anything will change, but Apple’s pricing policy is not in keeping for folks faced with increased heating bills, increased prices and wages not keeping pace with any of it. All of my previously comfortable Apple subs are under review. I’m making do with my older phone for another year. Much coveted AirPods Max are a no-go for the foreseeable*. Etc.

    *First world problems, I know
    Apple is not the issue. They are a private business and face inflation pressures as well.

    it is our monetary policy as well as administration engaging in a foreign war in Ukraine that is keeping up pricing pressures.

    Did you see the news that Zelensky signed law to bar all dissenting news media and reporters? This on top of him arresting any Ukrainian men trying to leave the country?

    There is no democracy between these two, we should stay out and stop letting Americans suffer
    fred1williamlondon9secondkox2TheSparkle
  • Reply 8 of 29
    mike1mike1 Posts: 3,125member
    Madbum said:
    I doubt anything will change, but Apple’s pricing policy is not in keeping for folks faced with increased heating bills, increased prices and wages not keeping pace with any of it. All of my previously comfortable Apple subs are under review. I’m making do with my older phone for another year. Much coveted AirPods Max are a no-go for the foreseeable*. Etc.

    *First world problems, I know
    Apple is not the issue. They are a private business and face inflation pressures as well.

    it is our monetary policy as well as administration engaging in a foreign war in Ukraine that is keeping up pricing pressures.

    Did you see the news that Zelensky signed law to bar all dissenting news media and reporters? This on top of him arresting any Ukrainian men trying to leave the country?

    There is no democracy between these two, we should stay out and stop letting Americans suffer

    Huh?! So, the Russians steamrolling across Europe would reduce pricing pressures?!
    danoxjesusfreakdarbus69roundaboutnowwilliamlondontwokatmew9secondkox2jas99bageljoeygatorguy
  • Reply 9 of 29
    JFC_PAJFC_PA Posts: 857member
    Nikkei? Seriously? That’s the very same doom report they put out every year at this time. 


    And it’s spectacularly wrong every time. 
    edited January 3 danoxtwokatmewjas99
  • Reply 10 of 29
    charlesncharlesn Posts: 388member
    rob53 said:
    I doubt anything will change, but Apple’s pricing policy is not in keeping for folks faced with increased heating bills, increased prices and wages not keeping pace with any of it. All of my previously comfortable Apple subs are under review. I’m making do with my older phone for another year. Much coveted AirPods Max are a no-go for the foreseeable*. Etc.

    *First world problems, I know
    Totally understand and I’m feeling the pain too. Apple’s pricing is due to a messed up world, something that isn’t going to change quickly. 
    I can't speak for global pricing, but Apple's street prices in the US offer far better products for much less money than I've ever seen... and I've been an Apple guy since the early '90s. The 9th gen iPad for $299. The Apple Watch SE for $249. Brand new Airpods Pro for $199. M1 Macbook Air for $799. iPhone SE 3 for $429. Don't believe me? The first iPhone in 2007 was priced at $852 in 2022 dollars. And, of course, the SE 3 is a VASTLY better phone in every way for half the price. I could go on with examples like this in every product category. In terms of just the price tag, Apple is never going to compete in the race to the bottom--but it currently offers better value in terms of product performance and support than it ever has before. 

    As happens from time to time, gloom and doom seem to have settled over the Apple story lately, and it may help to remember that just two months ago, Apple reported its best fourth quarter in history, along with the highest installed base in every major product category in its history. That was for the July-Sept quarter, when the world was already well into the grips of high inflation and an economic slowdown. I would not be betting heavily against Apple for the just completed holiday quarter. 
    edited January 3 darbus69aderutterroundaboutnowtwokatmewradarthekatjas99TheSparkle
  • Reply 11 of 29
    It is going to tighten up.  People around the world are seeing increased costs of living.  The last iPhone and Apple Watch were just incremental upgrades, aside from the fancy watch that only a few people would need.  I am holding out for a new M2 MacBook or Mac Mini, and will wait till the next gen. phone.  They are getting too expensive to upgrade every cycle, and even every other cycle is getting challenging.  But, I hope we will see AppleCar based tech. and VR from Apple soon.  These markets will take time to develop.
    n2itivguy
  • Reply 12 of 29
    danoxdanox Posts: 1,494member
    DAalseth said:
    Let’s see, after the xmas rush, there’s usually a big drop in orders for the beginning of the year. Wonder if that might have anything to do with it. That is if this is even true. Supply Chain rumours are mostly trash anyway.
    When Apple reports their quarter earnings at the end of the January, the numbers will be within the half percent plus or minus of last year’s Christmas quarter at most despite this the pack of cackling crows (financial analyst’s) will hesitate for one day if Apple is over the number and then continue on with the Apple is doom narrative, if Apple is under the number world has ended, and Apple is therefore doomed again, in short a can’t win.

    Like clockwork….
    edited January 3 DAalsethJFC_PAtwokatmew
  • Reply 13 of 29
    The story could be the other way around. According to this news Taiwanese suppliers saying they have enormous problems with workers getting sick. So some one twisted this to Nikkei saying Apple cut orders. The truth is the suppliers cannot deliver the products to Apple.

    https://www.worldjournal.com/wj/story/121344/6882487?from=wj_breaknews_index
    MadbumJFC_PAtwokatmewradarthekat
  • Reply 14 of 29
    chasmchasm Posts: 2,609member
    If you look back at AI stories about this from a year ago (or every past January), I think you'll find that this happens every year after the holiday rush (with minor variations on what's getting "cut").
    JFC_PAwilliamlondontwokatmewradarthekat
  • Reply 15 of 29
    firelockfirelock Posts: 233member
    If it’s January it must be time for Apple low-demand rumors. As someone else mentioned guess what it’s after Xmas, of course demand is going to drop.
    JFC_PAwilliamlondonradarthekat
  • Reply 16 of 29
    MadbumMadbum Posts: 410member
    The story could be the other way around. According to this news Taiwanese suppliers saying they have enormous problems with workers getting sick. So some one twisted this to Nikkei saying Apple cut orders. The truth is the suppliers cannot deliver the products to Apple.

    https://www.worldjournal.com/wj/story/121344/6882487?from=wj_breaknews_index
    You hit the nail on the head. 

    Further, having lived in Taiwan for years , I know 

    Nikkei and Financial times are short sellers mouth pieces out of Asia. Not sure why securities investigation doesn’t happen but likely everybody is paid off..


    edited January 3 JFC_PAtwokatmew9secondkox2
  • Reply 17 of 29
    MadbumMadbum Posts: 410member
    It is going to tighten up.  People around the world are seeing increased costs of living.  The last iPhone and Apple Watch were just incremental upgrades, aside from the fancy watch that only a few people would need.  I am holding out for a new M2 MacBook or Mac Mini, and will wait till the next gen. phone.  They are getting too expensive to upgrade every cycle, and even every other cycle is getting challenging.  But, I hope we will see AppleCar based tech. and VR from Apple soon.  These markets will take time to develop.
    No need for car. People more likely to upgrade 1k phone than 100k car. 

    I disagree with you. I believe many people will and still upgrade every couple years.

    I have 14 pro and I go back and use my iPhone 11pro and it feels different on most apps

    this is not even mentioning life saving satellite sos on the 14 pro 
    JFC_PA
  • Reply 18 of 29
    sunman42sunman42 Posts: 195member
    Madbum said:
    Nikkei Asia and that reporter is a paid mouth piece for Apple short sellers. Yes they get away with this stuff in Asia.

    That report is faulty given AirPods , watch and MacBook have completely different supply chains so one “anonymous” supply chain manager in China would not have that information.
    Sounds like an excellent opportunity for AAPL fans to buy some shares on the (relatively) cheap.
    9secondkox2radarthekatjas99
  • Reply 19 of 29
    JFC_PAJFC_PA Posts: 857member
    chasm said:
    If you look back at AI stories about this from a year ago (or every past January), I think you'll find that this happens every year after the holiday rush (with minor variations on what's getting "cut").
    And the publisher is always Nikkei. 
    radarthekatjas99
  • Reply 20 of 29
    lkrupplkrupp Posts: 10,315member
    “Sources in China say...”

    “Reportedly...”

    "It’s not known by how much...”

    And investors actually make decisions based on this crap? Really? Small, individual, screwball, knee-jerk investors maybe, but large investment firms? 


    edited January 3 9secondkox2RonnnieOJFC_PAjas99
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