Apple’s Claim of Confidence in Demand Helps Shares Spike
The share prices for Apple moved higher on Friday trading session as the company mentioned it is confident it will have strong demand coming in for its iPhones.
High Sales Demand
Apple has predicted that it is expecting a surge in demand for its iPhones. Therefore, it has made the decision to ramp up production of the iPhones.
Apple shared a report where it suggested that it is highly likely to record a great surge in demand for the iPhones. The tech giant has revealed that it is making necessary preparations to sustain the pressure of high demand.
It expects that in the final fiscal quarter, it will record a rise in demand for its iPhones, and it will be ready to face the challenge.
Foxconn Shared Lower Outlook
Foxconn, which is the main assembler for Apple, made an alarming announcement about its outlook. It reportedly shared a weak expectation regarding the production of the iPhones.
It cited lower demand for Apple products, which ended up raising concerns among Apple investors.
Even for the running quarter, Foxconn predicted that its earnings would not be much, and instead, they are looking at a flat performance.
On the other hand, Apple is expecting its assemblers to ramp up their production for the Apple iPhones.
According to information, Apple has asked its assemblers to increase their production as they will need to meet the manufacturing demand for 220 million iPhones.
This figure also includes 90 million new iPhones that Apple is aiming to launch very soon.
Apple’s Guidance for Revenue
Last month, when Apple shared its revenue data for the second quarter, the investors/stakeholders also demanded guidance surrounding the third quarter.
However, Apple denied providing the revenue guidance for the third quarter of 2022. For the second quarter, Apple reported it had generated stronger than expected revenue.
As for the running quarter, Apple has claimed that it will be able to generate strong earnings and revenue.
According to Apple, they have witnessed a significant rise in iPhones from China. The revenue they generated for the second quarter was worth $40.67 billion, while the forecast was set to $40.5 billion.
Apple is expecting that its earnings may continue rising and the situation may keep getting better for the company.
The lockdowns in China have started lifting once again, and as a result, the demand for their products will continue rising. This is a strong indication for Apple that the demand for their products is going to go high from China’s end.
Even towards the end of 2020, the demand from China had risen for Apple. The same trend was recorded back in 2021 and the same is expected by Apple at the end of 2022.