Apple (AAPL) will continue its iPhone production cut during Q2, Nikkei Asian Reviews reports, citing parts suppliers notified of the plan, who say the tech giant will maintain the reduced output level in the April-June period in light of sluggish sales.
The publication also notes that Cupertino does not plan to produce a large enough volume of its latest smartphone, the iPhone SE, released last month to offset the slump of its flagship series.
Apple shares are dropping in recent trade following the report. Shares are trading lower by nearly 2% to $110 in midday trading. The move comes on a relatively strong volume too with the issue currently trading more than 26 million shares, compared to the stock’s average daily volume of 41 million shares. Apple’s PPS has been on an downtrend from July, 20, 2015. Despite its 22 points price depreciation the name still has enough fundamentals that may further drive the stock upward. Currently, ticker is trading at a forward P/E of 11x and has long-term earnings growth expectation of about 12 percent.
Apple is currently valued at $612.04 billion. In the past 52 weeks, shares of the iPhone maker have traded between a low of $92.00 and a high of $134.54 with the 50-day MA and 200-day MA located at $105.34 and $107.45 levels, respectively. Additionally, shares of Apple trade at a P/E ratio of 1.07 and have a Relative Strength Index (RSI) and MACD indicator of 59.57 and +1.81, respectively.
Apple currently prints a one year loss of about 10% and a year-to-date return of around 7%.