Apple shares fall 22% since the beginning of year: Lowest since June 2021

December 29, 2022  12:17

Apple stock has fallen for the third consecutive trading session. By the close of recent trading, they had fallen another 1.4%. Since the beginning of the year their value has decreased by 22%. Today, the price per share is about $126, the lowest since June 2021, when one share was worth one dollar more than today.

The drop in the company's stock comes amid a global decline in electronics sales, but investors' concerns about the company's inability to ensure full shipments of iPhones during the holiday season – including problems at the Foxconn plant in China, which led to fewer shipments of the iPhone 14 Pro and Pro Max, this year's top-selling models – also play a big role.

According to the forecast of analyst from TF Securities Ming-Chi Kuo, the volume of aforementioned smartphones in this quarter could decline by 15-20 million. This will lead to losses for the plant, and, of course, for Apple itself.

Foxconn is trying to restore production and promises bonuses to employees

Foxconn, Apple's main contract manufacturer, is trying to restore production at the world's largest iPhone assembly plant in Zhengzhou to full strength. Employees in key positions have been promised a 5,000 yuan ($718) bonus if they work at the plant until the end of March. Bonuses for people in non-core positions will be 4,700 yuan, while employees in other departments will be paid 4,500 yuan.

According to Reuters, the factory plans to fully restore production of the iPhone 14 Pro by early January 2023. However, in the future it is likely to lose its status as the exclusive assembler of the iPhone 15 Pro smartphones, because after what happened Apple probably does not want to be in a similar situation again and will begin to expand the list of production partners.

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