Apple slides after telling suppliers to slash production by 20%

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Shares of Apple slid more than 2% in early trading Friday after the company told suppliers it would need 20% fewer parts for iPhones for the rest of 2018, according to the Nikkei Asian Review.

Reuters reported that Apple expects total iPhone shipments this year to be 80 million – a steep decline from the 100 million that Apple had planned for the same time last year.

The reported memo to suppliers is yet another milepost in Apple’s transition from a hardware company to a more services-based business. In March, Morgan Stanley said it expects more than 50% of Apple’s total revenue growth over the next five years to come from services. Meanwhile, it says the iPhone, which has contributed 86% of Apple’s revenue growth over the past five years, will make up just 22% of that revenue growth.

Apple stock hit an all-time high this week as its developer conference, WWDC, kicked off in California. You can read all 21 game-changing announcements Apple made at the conference here.

Shares are up 11% this year.

APPLE STOCK PRICE

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Markets Insider