On Wednesday, Apple Inc. stocks dipped as it slashed 10.00 million units on its iPhone production target amid the global chip shortage.
The tech giant slumped 0.91% or 1.30 points to $141.51 per share, following its succeeding lows this week.
Currently, it stands with a market capitalization of $2.34 trillion and shares outstanding of $16.53 billion.
Accordingly, the businesses initially planned to manufacture 90.00 million units until the end of the year.
However, the world’s largest chip buyer grappled with supply disruptions that wreaked havoc on the industry.
Its semiconductor suppliers struggled to deliver enough components. Then, the scarcity weighed down on the ability of the iPhone maker to ship new models.
Still, the company expects the fourth quarter of 2021 to obtain extensive sales this year.
In addition, it forecasted revenue of $120.00 billion, 7.00% higher than the same period in 2021.
Earlier this year, it notified the public that it faces supply constraints on its iPhone and iPad products.
Consequently, its parts distributors also plunge on the trading market amid the chip crunch.
For instance, Apple’s longtime provider of wireless components, Broadcom Inc, tumbled 1.43% or 7.06 points to $485.28 per share.
At the same time, its display parts supplier Texas Instrument Inc. lost 2.53% or 4.89 points to $188.48 per share.
Correspondingly, chipmakers warned the market that the demand would continue to outpace the supply in the following months.
Meanwhile, China’s prolonged energy crisis could further halt Apple’s production as Chinese distributors struggled with the power curbs.
For instance, electric component manufacturer TPK Holding Co. and iPhone assembler Pegatron Corp. modified their operating schedules due to the energy restrictions.
US Stocks Dipped as Apple Inc. Dropped
Furthermore, the Dow Jones Industrial Average index plummeted 0.34% or 117.72 points to $34,378.34 per share.
Similarly, the benchmark S&P 500 shed 0.24% or 10.54 points to $4,350.65 per share.
Also, the Nasdaq Composite index edged down 0.14% or 20.28 points to $14,465.92 per share.
Along with the plunge of Apple, Alphabet Inc. plunged 1.77% or 49.30 points to $2,728.98.
Likewise, Netflix Inc. lowered 0.33% or 2.10 points to $624.94 per share.
Then, Facebook Inc. diminished 0.52% or 1.68 points to $323.77 per share.
Conversely, Tesla Inc. improved 1.74% or 13.78 points to $805.72 per share.
It is the same with Amazon.com Inc. as it widened 0.03% or 1.03 points to $3,247.33 per share.