(CercleFinance.com) – Apple fell sharply on Wall Street on Monday, affected by fears that the group would suffer from the anti-Covid protests currently rocking China.
Nearly an hour after the opening, the action of the technological giant yields more than 1.9%, the lowest since the beginning of the month, while the Dow Jones index folds at the same time by 0.5% .
By deciding to install most of its assembly lines in China, the Californian group has made itself very vulnerable to possible shocks to the Chinese economy.
According to data published by Apple, its partners and contractors currently operate more than 150 production sites in the country.
In a note released in the morning, Wedbush analysts estimate that this dependency means that up to 10% of iPhone supply could be at risk within weeks of Christmas.
‘The fact is that Apple has very few options as the holiday season approaches and the company remains at the mercy of China’s zero Covid policy, a particularly frustrating situation for both Apple and investors’, explains the American research department.
‘In many Apple Stores, we can now see shortages affecting 35% to 40% of the iPhone 14 Pro a few days before Christmas and online sites are now offering deliveries in early January, depending on the model, the capabilities and color,” adds Wedbush.
On the stock market, Apple now shows a drop of nearly 16% since August and a decline of some 17% since the start of the year, against a decline of around 15.5% for the index. S&P500.
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