Apple's iPhone Sales Outlook

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Apple's iPhone Sales Outlook

Apple (Nasdaq: AAPL) anticipates iPhone sales staying the same as it was last year, according to a report on Thursday afternoon.

Details: From the Bloomberg report, Apple asked its suppliers to make 90 million of its newest devices, which is the same as last year. This will result in 220 million iPhones assembled in 2022, which is near the same level in 2021.

Background: These expectations for sustained iPhone sales come as the smartphone market faces pressure from a potential recession. Apple is betting that its “affluent clientele and dwindling competition” will help them survive any problems, according to the report.

Going Up: Another report earlier in the week suggested that Apple could raise some prices for the iPhone, which would counter any inflation issues.

Numbers: Shares of Apple are down 7% this year, but are up 15% in the past 30 days.

Final Thoughts: Apple is trying to get its stock price into positive territory for the year. Good iPhone sales would help with that.

Notables

Notable Earnings Today: PLx Pharma (Nasdaq: PLXP), Spectrum Brands (NYSE: SPB), Broadridge Financial (NYSE: BR), Honest Company (Nasdaq: HNST), New York City REIT (NYSE: NYC), PureCycle Technologies (Nasdaq: PCT), China Automotive Systems (Nasdaq: CAAS).

Notable IPOs Today: Forza X1, Inc. (Nasdaq: FRZA), CORPHOUSING GROUP INC. (Nasdaq: CHG).

Notable Equity Crowdfunding Campaigns Ending Today: Green Goddess Supply (StartEngine), Vxtra Health (StartEngine).

Notable Economic Events Today: Export Price Index / Import Price Index (8:30 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET), WASDE Report (12:00 p.m. ET).

Rivian’s Supply Chain Constraints

Shares of Rivian Automotive (Nasdaq: RIVN) dropped 2.44% in after-hours trading on Thursday after the electric vehicle automaker posted mixed financial earnings.

Financials: Rivian reported a loss of $1.89 per share, which was below estimates. It also had revenue of $364 million, which was better than expected.

The Good: Rivian produced 4,400 vehicles in the quarter, up from 2,550 in the previous quarter. The company reaffirms its 2022 production guidance of 25,000 total units and it has over $15 billion in cash.

The Bad: The company blamed supply chain constraints as the biggest limiting factor for production. Rivian’s loss was also attributed to labor and overhead costs as well as inflationary pressures.

Outlook: The company is also lowering its adjusted EBITDA guidance to $5.4 billion for the full year.

Numbers: Rivian’s stock is down 62% this year, but is up 29% in the past 30 days.

Final Thoughts: It’s a tough market for any electric vehicle maker. The question remains: Is Rivian overvalued?

Monero Keeps Dropping

The price of the cryptocurrency Monero dropped 4% on Thursday due to the anticipation of a network upgrade, which will force users to update their software.

Final Thoughts: Monero has lost 37% of its value so far in 2022.

Trends to Watch

Making it Easier to Spread: CDC eases Covid guidance as U.S. has more tools to fight the virus and keep people out of the hospital (CNBC)

Gassed Out: Gas prices drop below $4 a gallon. These factors will determine what happens next (NPR)

Darkness: Illumina stock tanks as gene-sequencing company misses expectations and issues bleak outlook (MarketWatch)

Happy Holidays: The US Postal Service is raising rates for the holidays (CNN)

Spotted: BlackRock, Fresh off Coinbase Tie-Up, Offers Direct Bitcoin Exposure (CoinDesk)

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