The entire tech sector is trending sharply lower on Wednesday with Apple Inc.(NASDAQ:AAPL)’s shares putting heavy pressure with the stock down for the third consecutive day on concern that the company may not be able to meet the user’s demand for its latest launched iPhone5. The stock is now down 1.63% to $662.50, extending its losses to about 5.50% since Monday.
NASDAQ.Composite(INDEXNASDAQ:.IXIC) is the biggest major indices loser an fell about 1%.
The stock started to move lower on Monday after it had reported lower than estimated opening weekend sales of iPhone which was introduced on September 12. The company had disclosed that it sold 5 million of iPhone 5 during the opening weekend, which is very less compared to analysts’ target of 6-10 million during the week.
The company had said on Monday that it had run out of its initial supply of iPhones and was struggling to meet demand. It added that many of the orders placed in advance with the company would be delivered only in October. Chief Executive Tim Cook said that the company was working hard to build enough iPhone5s for everyone."
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There has been huge and unprecedented demand for the new iPhones and within 24 hours of Apple accepting advance orders online it had been sold out with orders being placed for about 2 million phones.
One of its key component makers, Japan’s Sharp which makes the phone's LCD screens has been beset by production problems, which has delayed supplies.
Shares of another Smartphone maker - Nokia Corporation (ADR)(NYSE:NOK) continued to slide and lost another 5% to $2.55. Yesterday, analyst at BMO had downgraded the stock to "underperform" from "market perform" following the company’s news that plans to cut 725 jobs at its factory in South Korea as well announced two new lower end smartphones.
Advanced Micro Devices, Inc.(NYSE:AMD) continued to hit new low and fell 1.52% to $3.22. The stock has corrected over 17% after announcing the departure of its Chief Financial Officer Thomas Seifert.
While the company said that his resignation had nothing to with the company and Seifert planned to pursue other opportunities, it was enough to unnerve investors who responded by selling the shares.
Netflix, Inc.(NASDAQ:NFLX) shares are showing some kind of relied after the recent slump and now trading higher by 1.20%. SanDisk Corporation(NASDAQ:SNDK) lost 3.74%.
Shares of Apple component suppliers are also trading lower with Cirrus Logic, Inc.(NASDAQ:CRUS) slid 3.22% to $37.42, Broadcom Corporation(NASDAQ:BRCM) was down over 2% and TriQuint Semiconductor(NASDAQ:TQNT) slid 2.30%.