Apple, the world's largest company may be headed for problems. The company has lowered its supply chain orders in a big way. This could raise concerns among investors with regard to the company's ability to grow. Today, we'll talk about the reduction in supply chain orders, what it means for Apple's sales, how investors are likely to react to the news and how binary options traders can take advantage of the trends.
Apple Supply Chain Reductions Spell Signs Of Trouble
Credit Suisse recently confirmed that Apple has lowered it's number of November supply chain orders. The news came out by way of a research note issued by the investment bank. According to the research note, iPhone order expectations during the December holiday season and the entire quarter surrounding the holiday season were reduced. Currently, Credit Suisse is expecting that iPhone orders will come in between 70 million and 75 million. This proves to be a cut in the supply orders for the iPhone in the amount of about 10%. In the note, analyst Kulbinder Garcha had the following to say…
“The cuts seem to be driven by weak demand for the new iPhone 6s… As we had highlighted in our research report 'AAPL: Supply-Chain Cuts, Weakness, Then Opportunity' we do see a subdued iPhone cycle for the next few quarters.”
What This Means For Apple Sales
The fact that Apple has reduced supply chain orders is a major concern when it comes to sales. The reality is that Apple relies on the holiday season in order to show exponential growth as the result of its newest products, most importantly, the iPhone. Investors have been closely watching iPhone sales because the company has already saturated the market in a big way. So, investors have been concerned that with such strong market saturation, Apple may have a hard time growing from here. Unfortunately, the reduction in supply chain orders only exacerbates those concerns.
What We Can Expect To See From Apple Moving Forward
Over the past month, Apple has had a bit of a hard time. Unfortunately, I think that we've only seen the tip of the ice burg when it comes to the struggles that the company is likely to face. As mentioned above, iPhone sales are incredibly important to the bottom line at Apple. With supply chain orders declining and lower demand for the iPhone 6s, investors don't have much to look forward to with regard to the company. In a sense, Apple may soon become a victim of its own success. With iPhone orders declining, we can't expect to see much by way of positivity from the stock.
How Binary Options Traders Can Take Advantage Of The Trends
While the fact that iPhone supply chain orders have declined is bad news for investors, it will likely prove to be a strong opportunity for binary options traders. Essentially, any time bad news is released with regard to a publicly traded company, we can expect to see declines. Since binary options traders are required to predict future price movements, this is great news for traders. To take advantage of the trends, simply look for strong put opportunities in order to follow the declines down to the profits! Keep an eye on the latest financial news.
What Do You Think?
Where do you think Apple is headed moving forward? Let us know your opinion in the comments below and read more world financial news by TheBinaryAdvisor.
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