Investors Need to Worry About AAPL Reports came in last weekend that Apple Inc. may trim production of its iPhone family by around 10% in the first quarter of 2017, according to calculations based on data from suppliers. The phones have been selling more sluggishly than expected. Information on the production of the latest models and global sales suggest that there will be cuts in both the “iPhone 7” and “iPhone 7 Plus” lines in the coming quarter. (Source: “Apple to slice iPhone production 10%,” Nikkei Asian Review, December 31, 2016.)
Adding to Apple’s problems, just a few days ago, Consumer Reports magazine withheld recommending the new “MacBook Pro,” as the machine did not deliver the promised battery life. Phil Schiller, Apple’s senior vice president of worldwide marketing tweeted that the company was working with Consumer Reports to understand their battery tests, as the results did not match Apple’s extensive tests or field data.
To add to these woes, AAPL stock is also under political pressure to consider shifting its manufacturing base to the United States. President-elect Donald Trump has proposed high tariffs for goods produced in China, but has also conveyed to Apple CEO Tim Cook that he would provide lots of incentives to the company if it builds its manufacturing base in the U.S.