Stock News – APPLE COMPUTER INC. Technical Analysis Forecast
07 Nov 2022
Apple warns of lower iPhone shipments as COVID curbs hobble China plant
Apple Inc (NASDAQ:AAPL) expects lower shipments of premium iPhone 14 models than previously anticipated following a significant production cut at a virus-blighted plant in China, dampening its sales outlook for the busy year-end holiday season.
Demand for high-end smartphones assembled at Foxconn’s Zhengzhou plant has helped Apple remain a bright spot in a technology sector battered by consumer spending cutbacks amid surging inflation and interest rates.
But the Cupertino, California-based vendor has fallen victim to China’s zero-COVID-19 policy, which has seen global firms including Canada Goose Holdings (NYSE:GOOS) Inc and Estee Lauder Companies Inc (NYSE:EL) shut local stores and cut forecasts.
“The facility is currently operating at significantly reduced capacity,” Apple said on Sunday without detailing the scale of the reduction.
“We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated,” it said in a statement.
Reuters last month reported that iPhone output could slump as much as 30% in November at Foxconn’s Zhengzhou factory – one of the world’s biggest – due to COVID-19 restrictions.
APPLE COMPUTER INC. Technical Analysis: Daily Chart
In the daily charts, APPLE COMPUTER INC. is trading in down channel. APPLE COMPUTER INC. is currently trading below all SMA.
RSI is in selling zone which indicates bearishness. MACD is currently below zero which indicates bearishness.
Its immediate support is 133.45 & the resistance level is at 137.90.
APPLE COMPUTER INC. will trade in an down channel until there is trend reversal.
How to Trade APPLE COMPUTER INC. this Week:
APPLE COMPUTER INC. will follow the downtrend until there is trend reversal. So, remain bearish on APPLE COMPUTER INC.