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The Dow fell 450 points, mostly pulled down by Apple, as the company is blaming poor curation by major news outlets for creating misleading panic over its iPhone supply.
Apple is insisting that despite the rumors affecting its supply chain, you will be able to purchase its newest lines of iPhones this holiday season.
New rumors circulating that the newest line of iPhones from Apple are not selling well or at least not as well as its investors have hoped, sent stocks tumbling on Monday, as the Dow fell 450 points and the NASDAQ tumbled 2.8%.
The latest rumors about its supply chain caused Apple’s shares to fall 4% on Monday, plunging nearly 20% from the all-time high they hit a few months ago, that sent Apple Inc.’s worth two over $1 trillion.
Stocks started tumbling after a Wall Street Journal report said that Apple has cut orders for its iPhone XR, iPhone XS and iPhone XS Max.
Subsequent reports by Bloomberg, CNBC, and Reuters only furthered the panic.
Apple fired back that it was poor curation at these news agencies at play for creating misleading reports and driving the worries that its supply and sales are lacking.
Apple released revised revenue reports, which showed that only five firms – out of the company’s 200 primary suppliers – were at the core of where the news agencies were drawing their stories and assumptions from. Overall, those companies only represent 2.5% of Apple’s suppliers.
While there were trouble at these very few component producers, it’s hardly enough to matter.
According to a report by Apple Insider, supply chain rumors for the iPhone have happened every year for at least the last five generations of iPhones – and they have been wrong every year.
In fact, CNBC reported just last week that “Apple analysts have a long history of misreading week iPhone demand based on supplier rumors.” The piece went on to say “stop me if you’ve heard this one before,” emphasizing that “analysts and journalists have been consistently wrong in trying to interpret data from Apple supply chain.”
Just last week, on Monday, such rumors caused Apple shares to fall 5 percent.
