|Apple's iPhone overshoot|
Data: FactSet; Chart: Axios Visuals
Apple shares were sent tumbling today on a Bloomberg report that suggested demand for new iPhone 14 products was weaker than the company previously expected, Hope writes.
Yes, but: Apple analysts were largely unsurprised and unfazed.
Gene Munster at Loup Funds noted on Twitter that production cuts happen "every iPhone cycle" because "Apple always overshoots production goals to its suppliers in the summer and 'cuts' in the fall."The big picture: Sales growth of the iPhone (which alone makes up more than 50% of the company's overall sales) have cooled over the past few years — and it's partly why the company has pushed so deeply into higher margin services, including news, gaming, music and media.
Of note: Apple shares closed down 1.3% today, after falling nearly 4% earlier in the day