The world's largest company volleyed from small to moderate losses on reports of sluggish demand for its iPhone X.
A report in Digitimes said that Apple has ordered its suppliers to ship just 40% of original iPhone X production plans and hold the remainder. Apple is reportedly waiting for pre-sale orders to begin on Oct. 27 to assess how to go forward in deliveries. When the iPhone 7 was in the pipeline last year, Apple ordered 60% of the total production plans. The iPhone X is Apple's flashier model with a $1,000 price tag.
Monday's losses are just the latest to hit Apple. Last week, the world's largest company was under pressure on reports of weak sales of its iPhone 8 and connectivity issues with its next-generation smartwatch.
In a report Friday, Nomura noted signs of weakness in preorders of the iPhone 8 as slower promotional activities and the launch of the company's special edition iPhone X potentially cannibalize sales.
Apple confirmed that the new watch had encountered connectivity problems earlier last week. The Apple Watch Series 3 is the first model to link to networks independently rather than through an iPhone. In a statement to The Verge, Apple said the problems occurred when the watches were already using unauthenticated WiFi networks without connectivity. Apple said it was "investigating a fix for a future software release."
Apple shares were down 1% on Monday morning. Semiconductor names such as Nvidia Corp. (NVDA) - Get NVIDIA Corporation Report , Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report and Ambarella Inc. (AMBA) - Get Ambarella, Inc. Report fell, while the S&P Semiconductor SPDR ETF (XSD) - Get SPDR S&P Semiconductor ETF Report declined more than 1%. The Technology Select Sector SPDR ETF (XLK) - Get Technology Select Sector SPDR Fund Report slid 1.1%.
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