Apple stock dips amid questions about iPhone production disruptions at Foxconn - MarketWatch

Apple shares AAPL, -1.11% were disconnected 1.1% successful midday trading Monday.

Representatives for Apple and Foxconn didn’t instantly respond to MarketWatch’s petition for remark connected the accumulation disruptions.

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Analysts were divided connected however overmuch the issues could impact Apple, with Mizuho desk-based expert Jordan Klein, who’s associated with the company’s income squad and not its probe arm, penning that accumulation hiccups make immoderate hazard that Apple volition spot undersupply successful the December 4th and past oversupply successful the March quarter.

“In sum, we spot neutral interaction implicit mean term,” since “all that truly matters is existent extremity demand,” Klein wrote. “If anything, I presumption this arsenic a POSITIVE arsenic choky proviso limits risk AAPL slows accumulation successful Dec qtr, and request propulsion into Mar offers a buffer connected seasonal slowdown.”

Barclays expert Tim Long was much pessimistic.

“We did immoderate transmission checks successful section connection with our contacts successful China implicit the weekend,” helium wrote. “We came distant incrementally antagonistic connected the imaginable for AAPL to conscionable statement estimates for Dec-Q, adjacent though they conscionable reported past week.”

Given the Zhengzhou plant’s outsized value to iPhone production, peculiarly of Pro models, Long said that the COVID outbreak “again highlights a key, yet often overlooked, hazard for AAPL: determination is manufacturing attraction hazard successful China.”

He rates Apple’s banal astatine adjacent value with a $156 terms target.

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