CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Apple (AAPL) shares fall 3% on weaker iPhone 13 demand

By William Hoffman

14:57, 2 December 2021

Apple iPhone 13
Apple remains on track to generate record holiday sales – Credit: Apple

Apple may not have the blockbuster quarter the tech giant or analysts were expecting as demand for its latest iPhone 13 wanes ahead of the holiday shopping season.

The consumer technology company cut its iPhone 13 supply by 10 million units to 80 million in October due to supply chain constraints holding up further production of the semiconductor chips that power the phone. Apple expected to fulfil those 10 million orders in early 2022 but is now telling suppliers that those sales may not materialise, according to a report from Bloomberg.

Apple shares opened as much as 3% lower trading at lows of $157 per share on Thursday just days after hitting a 52-week high of $170.30 per share on 1 December on speculation the company specialising in consumer electronics, computer software and online services could be entering the autonomous electric car space in 2025.

Supply chain constraints

The Cupertino, California-based company is still on track to generate record holiday sales, which is historically its largest quarter of the year.

In mid-November Wedbush analyst Daniel Ives estimated that Apple is on track to sell 40 million iPhones between Black Friday and Christmas, which would be record holiday pace for the company despite limiting supply by 10 million units.


15.36 Price
+5.850% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.16


239.02 Price
+1.900% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.14


134.12 Price
+7.790% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.25


147.02 Price
+0.760% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.14

Those projections are still generally expected to hold true for the quarter, but the reports of weaker demand bring into question 2022 sales. Consumers may be fatigued by the search to find available iPhone 13s and with the Covid-19 Omicron variant spreading around the world they could choose to save their money instead.

Last month Ives gave a bullish outlook for Apple demand calling for a 12-month price target of $185 per share.

“While the supply chains issues have curtailed some growth for Apple on this massive product cycle playing out across its entire hardware ecosystem, we believe the pent-up demand story for Cupertino is still being underestimated by investors with chip issues a transitory issue in our opinion,” Ives wrote in a report sent to “Roughly 250 million of 975 million iPhones worldwide (have not been upgraded in) 3.5 years, we view supply chain issues as nothing more than a speed bump on a multi-year super cycle iPhone 12/13 that continues to play out.”

Read more: Apple (AAPL), Microsoft (MSFT) test new highs

Markets in this article

Apple Inc (Extended Hours)
191.20 USD
1.25 +0.660%

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading