US tech giant Apple continues to prove its quality credentials, bucking recent market weakness despite toning down demand for its latest iPhone.

Reports emerged overnight that Apple has told components suppliers that demand for its iPhone 13 line-up has slowed, possibly a sign that some potential customers have decided not to upgrade this Christmas given the shortage of handsets.

Companies that provide parts for Apple products include Advanced Micro Devices, Broadcom, STMicroelectronics and Japan’s TDK.

In October Apple cut its quarterly iPhone sales estimates by 10 million due to the global shortage of chips, with chief executive Tim Cook warning that the impact of supply constraints, which cost the company $6 billion in sales in the three months to 30 September (Apple’s financial Q4), will be worse during the holiday quarter and that chip shortage was affecting most of the company’s products.

RARE PARTS SEE DEMAND DRY UP

The Cupertino company has now told suppliers and iPhone sellers that it may not be able to claw back those missed holiday iPhone 13 sales because of lack of parts.

Nikkei reported last month that Apple even cut back production of iPad tablets to allocate more components to the iPhone 13.

Shares in Apple barely moved during trading hours in New York on Wednesday but are showing a 2% decline pre-market to $161.50.

Apple's shares have shown exceptional resilience during the recent market sell-off, bouncing off last Friday’s 3% fall to close at a new all-time high of $165.30 on Tuesday 30 November. Over the past month Apple shares have rallied 10% versus 2.5% declines for the S&P 500 and Nasdaq Composite.

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Issue Date: 02 Dec 2021