Supply. One of the things that all of the producers and distributors of gadgets most depend on. Supply and demand, and it seems that while the latter is all fine, the former is going through some tough times for Apple. Of course, of Apple brought their production chain to USA, the price for their phones would skyrocket, but they would not have a problem like they are having today.
So, what is the deal?
Well, today the stock for AAPL fell. It all happened very fast and abrupt. And it seems that it is indeed the supply fears that became the reason for the fall. You see, the outbreak of coronavirus in China have already become the main news for the beginning of 2020. And surely, Apple are also being affected by the virus. Their production while not entirely, but mostly located in China. And it is totally plausible that their earnings are going to be affected because of the virus. And of course, investors have already picked up on that.
So, there you have it – Apple did absolutely nothing to have their stocks dropped, but the laws of the markets cannot be fooled. All Apple have to do is take actions to recover the losses and dissolve our concerns about the possible supply outbreak.
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