Apple (AAPL, $154.21) to Cut iPhone Production for Q1
The Nikkei Asian Review on Wednesday confirmed that Apple is ready to slash its new iPhone production by about 10% over the next three months.
According to Nikkei, the tech giant has already intimated its suppliers in December to produce fewer new iPhones than what was initially planned for first quarter of 2019.
This would entail a reduction from the overall planned production volume for new and old iPhones to about 40 million to 43 million units for the March quarter — down from an earlier prediction of 47 million to 48 million units.
This would be the second time in two months that Apple is trimming its smartphone production. The new revised plan would apply to all new iPhone models — the XS Max, XS and XR.
Apple, including its rivals like Samsung, is now finding itself in a highly competitive market where growth is falling. According to the International Data Corporation, global smartphone shipments fell by ~6% in the third-quarter of 2018 — that was the fourth consecutive quarter of year-over-year declines, which raised concerns over the market's future.
Apple announced the plan to cut production just after a week it had slashed its guidance on revenue citing reasons like lower-than-expected iPhone revenue in the Greater China region and weakening economy in China.
Some analysts explain that today’s smartphones are all alike and offer little difference. In such a scenario, the need is now to focus on innovation.
Momentum Indicator for AAPL turns positive, indicating new upward trend
AAPL saw its Momentum Indicator move above the 0 level on August 24, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 64 similar instances where the indicator turned positive. In 45 of the 64 cases, the stock moved higher in the following days. The odds of a move higher are at 70%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for AAPL just turned positive on August 26, 2026. Looking at past instances where AAPL's MACD turned positive, the stock continued to rise in 30 of 46 cases over the following month. The odds of a continued upward trend are 65%.
AAPL moved above its 50-day moving average on September 10, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for AAPL crossed bullishly above the 50-day moving average on August 28, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 61%.
Following a +5.37% 3-day Advance, the price is estimated to grow further. Considering data from situations where AAPL advanced for three days, in 231 of 353 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
The Aroon Indicator entered an Uptrend today. In 201 of 305 cases where AAPL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 66%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 31 of 62 cases where AAPL's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 50%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AAPL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
AAPL broke above its upper Bollinger Band on September 01, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 11 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 12 (best 1 - 100 worst), indicating outstanding price growth. AAPL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 19 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 31 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: AAPL's P/B Ratio (45.045) is very high in comparison to the industry average of (5.994). P/E Ratio (38.104) is within average values for comparable stocks, (115.156). AAPL's Projected Growth (PEG Ratio) (2.607) is slightly higher than the industry average of (1.418). Dividend Yield (0.003) settles around the average of (4.670) among similar stocks. P/S Ratio (10.515) is also within normal values, averaging (4.373).
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General Information
a manufacturer of mobile communication, media devices, personal computers, and portable digital music players
Industry ComputerPeripherals
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