11 points off the Dow Jones industrial average was shaved after shares of Apple briefly dipped more than 2 percent in heavy afternoon trade on Friday. The Dow Jones was brought down as Apple is the third-greatest contributor to declines in the index.
Before closing down 1.7 percent at $112.71 a share, the iPhone maker’s shares fell to a low of $111.15 a share.
Concerns about sales of the latest iPhone were supposedly by a report from market research company GfK followed by acceleration of decline. During the launch weekend, point-of-sale data in 17 countries formed the basis of the findings.
The report is exclusively for subscribers, and would not divulge its contents, GfK said after it confirmed the existence of the report. Chip orders for the iPhone 7 and 7 Plus will likely fall about 20 percent sequentially in the first quarter of 2017, indicated a separate report in technology website Digitimes citing chip suppliers, on the other hand.
Apple shares jumped 11.4 percent in their best week since October 2011 aided by strong preorders for the device last week. First weekend sales figures for the newest iPhones, which hit stores last Friday, would not be released, Apple had said.
Tech was the second-worst performer in the S&P 500 on Friday. Apple suppliers Skyworkd, down more than 3 percent, and Qorvo, down more than 2 percent were among the movers.
The Technology Select Sector SPDR Fund, of which Apple makes up about 14 percent of the weighting, and the fund dropped close to 1 percent.
There has been no comment from Apple so far.
Meanwhile, Jim Cramer, the host of ‘Mad Money’ describes the “bizarre disconnect” between what the sellers of Apple’s products are saying and what analysts are saying about Apple sales.
Demand for the iPhone 7 could be diminishing faster than usual, said Piper Jaffray’s Gene Munster in a note on Tuesday and raised questions about demand in the future.
iPhone sales are even stronger than he expected since the launch said Sprint CEO Marcelo Claure when asked about Munster’s note.
“It’s not a question of who do you want to believe. It is more serial commentary,” Cramer said. Cramer said that Apple stocks were knocked down by Munster’s note, and then boosted on Claure’s commentary, reflecting the commentary.
On the other hand Russia is coming out with its own answer to the iPhone with a starting price of only $130 and going on sale in 2018.
The head of the electronics company Ruselectronics, part of state-owned Rostec, Igor Kozlov, said that it will produce the Russian answer to the iPhone. The new ohone will be far cheaper but would be comparable in quality with the Apple smartphone, he told reporters.
“In 2018, we will have our own, domestic iPhone, which will cost only about $130,” Kozlov said on Thursday.
The general director of Rostec is appointed by the Russian president and was founded in 2007 to further Russia’s high-tech industry.
(Adapted from CNBC)