Apple stock slides amid fears of slowing iPhone demand

Apple shares fell on Thursday over concerns of low demand for its iPhone 13. The tech giant reportedly told suppliers pent up orders for its next generation devices may not be as strong as expected going into the holiday season.

The concerns "should be taken seriously," Tom Forte, analyst at DA Davidson told Yahoo Finance Live on Thursday. "At the same time, I do think it's a reflection still of the very challenged supply chain."

Forte notes orders for the iPhone Pro and Mac Pros still show a 1- 2 week delay on the company's website.

"I think this is the consumer who is ... seeing that there are delays at the ports and not even interested right now in waiting for their product, but ultimately will upgrade."

Apple had already cut its iPhone 13 production target for the year. In October the company warned about chip shortages which knocked out billions in potential revenue in its Q4 earnings.

“We estimate these constraints had around a $6 billion revenue impact driven primarily by industry wide silicone shortages, and COVID related manufacturing disruptions,” Cook said during the company’s last earnings report.

Apple shares fell as much as 4% at the open of Thursday's session, the biggest drop since May. Shares paired some of there losses by mid-morning.

Apple had been trading at all-time highs earlier this week. The stock closed at a new record on Tuesday despite a broader market sell-off. Some analysts saw the company as a "flight to safety" trade amid volatility due to the Omicron variant and possible actions from the Federal Reserve to combat rising inflation.

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