When Foxconn workers walked off the job in the last two weeks, markets beat up Apple's (AAPL) stock.
AAPL stock met resistance at around $155 and closed below $140 by the end of last week.
Markets are speculating that AAPL stock might have trouble holding the $2 trillion market capitalization.
Apple’s supply chain disruption will only delay device sales. Even if iPhone supply is limited during the
all-important holiday season, customers could wait. Already faced with inflation, consumers have less to
spend. They may delay their purchases of high-quality Apple products by waiting a few more weeks.
Apple will offset any temporary slowdown in hardware sales by relying on Apple TV subscriptions. It
quietly raised prices for Apple Music and Apple TV Plus on Oct. 25, 2022. Apple TV Plus will cost $2
more or $7 per month. The bundled service, Apple One, also rises by $2.
The company has the pricing power to hike subscription rates. Customers are unlikely to cancel their
service for the small increase.
Risk
Bears cited Apple’s market cap is worth more than that of Netflix (NFLX) and Amazon (AMZN)
combined. Alternatively, it is worth as much as Alphabet (GOOG) and Microsoft (MSFT) combined.
Markets might try to take AAPL stock price-to-earnings multiples into the high teens. That would imply a
new one-year low for the stock. Its diversified business suggests it won’t stay down for too long.
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