- Apple reportedly told suppliers it will need 20% fewer iPhone components for the second half of the year.
- The stock sank more than 2% following the report from Nikkei Asian Review.
- Follow Apple’s stock price in real-time here.
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.
- Markets Insider