Apple Foldable iPhone Production Falls Short, Stock Price Takes Hit
Apple's stock price has taken a hit after reports emerged that its mass production of the first foldable iPhone is falling far short of expectations. On Friday, Apple (AAPL.US) closed at $320.91, a drop of over 2% from previous trading.
The issue lies in Apple's stringent quality-control standards, which are limiting daily production to just 'a few hundred' units. For commercial shipments to be viable, tens of thousands of devices need to be produced each day. If this output doesn't increase soon, the foldable iPhone may face severe channel inventory shortages when it launches.
Apple and its suppliers are working hard to ramp up production, but time is running out. The company's reputation for attention to detail has made its products highly sought after, but it also comes with a cost, in this case, significantly delayed timelines and reduced sales potential.