Apple Stock Tumbles Amid Supply Constraints and Weaker Revenue Forecast
Apple's stock price took a significant hit on Friday, plummeting approximately 9.6% by close as analysts assessed supply constraints and a weaker revenue forecast.
Melius Research analyst Ben Reitzes maintained a buy rating but reduced his price target to $370 from $385, citing potential benefits of using Intel's manufacturing capabilities to supplement Taiwan Semiconductor Manufacturing's contract chipmaking services.
Apple's management attributed the supply constraints to processor and memory shortages, which are hindering their ability to meet demand for iPhones and Mac computers. The company expects current-quarter revenue growth between 9% and 11%, below Wall Street's approximately 12% forecast.
The potential partnership with Intel represents an analyst recommendation rather than a confirmed sourcing agreement, making it essential for investors to carefully consider the implications.