Apple stock looks to snap four-day losing streak after report of improved iPhone Pro production - Morningstar

By Bill Peters

'Supply is improving and inching dilatory towards parity with demand,' an expert says; shares emergence much than 3%, but are inactive headed for worst twelvemonth since 2008

Shares of Apple Inc. moved higher connected Thursday aft 4 consecutive days of declines, arsenic a study indicating that immoderate iPhone accumulation successful China had improved -- adjacent arsenic a reopening from COVID-19 lockdowns leaves the federation successful flux.

Apple (AAPL) banal was much than 3% higher successful Thursday day trading. Shares had fallen a corporate 7% successful their four-session losing streak, and are down 26.9% year-to-date, which would beryllium the worst twelvemonth for Apple since 2008. The S&P 500 scale is down 20.6% successful 2022, portion the Dow Jones Industrial Average , which counts Apple arsenic a component, has fallen 9.5%.

The determination higher came aft a Wall Street Journal nonfiction connected Thursday suggested shorter hold times for Apple's premium iPhone Pro models and a rebound successful accumulation capableness astatine a Foxconn Technology Group works successful the metropolis of Zhengzhou that makes those phones, based connected "people progressive successful the proviso chain" arsenic good arsenic analysts. Apple relies connected much costly iPhone offerings -- specified arsenic the iPhone 14 Pro Max -- to boost gross erstwhile request for smartphones wide starts to chill off.

The accumulation betterment would travel a COVID-19 outbreak successful that mill successful October, arsenic good arsenic harsh question restrictions and idiosyncratic protests that person hampered production, the Journal noted. Foxconn ended those restrictions earlier this month. But arsenic the authorities ends astir COVID restrictions much broadly, infections person dispersed much quickly, threatening the wellness of the mill workers.

JPMorgan expert Samik Chatterjee, successful a enactment connected Tuesday, said "supply for the iPhone Pro models continues to amended slowly, with pb times moderating further successful China, and a bulk of SKUs are present disposable for in-store pickup crossed each geographies, including China for the archetypal clip since merchandise launch."

"Lead times for the Pro models are present tracking successful enactment with pb times seen anterior to the COVID outbreak successful Zhengzhou, China, suggesting that proviso is improving andinching dilatory towards parity with demand," the enactment continued.

The Journal, citing different analysts, said that the segments of the Zhengzhou installation that made iPhones were moving astatine astir 70% capacity. In an effort to pull much employees, Foxconn, the Journal said, had offered incentives to immoderate workers who were consenting to enactment connected accumulation lines done March 20.

During its astir caller circular of quarterly results, Apple's iPhone income missed expectations. Analysts person raised questions astir request for the newer iPhone 14 models aft reports of a planned pullback successful production.

-Bill Peters

(END) Dow Jones Newswires

12-29-22 1349ET

Copyright (c) 2022 Dow Jones & Company, Inc.