Apple Slices Below 200-Day On iPhone Production Cuts Report
Apple ( AAPL ) stock slid Friday on a report that it will continue its reduced production of iPhones in the April-June period in light of sluggish sales. Nikkei Asian Review said it learned of the extension of lower production from parts suppliers who were notified of the plan. Apple fell 2% to 109.85 on the stock market today , falling back below the 200-day moving average. Shares of Apple chip suppliers Broadcom ( AVGO ), Cirrus Logic ( CRUS ) and Skyworks Solutions ( SWKS ) traded lower on the news. Broadcom lost 2.1% and Skyworks 2.2%, while Cirrus fell 0.4%. Apple has been dogged by reports of production cutbacks related to slow sales of its flagship iPhone 6S series smartphones. Apple lowered production for the January-March quarter by about 30% from the year-earlier period. And it decided to maintain the reduced output level in the current quarter, Nikkei Asia Review said . Apple has forecast its first year-over-year decline in iPhone unit sales for the March quarter. It is scheduled to report fiscal Q2 results on April 25. On Thursday, investment bank Canaccord Genuity predicted that iPhone sales will decline for three straight quarters before getting a boost from the iPhone 7 launch this fall. RELATED: How Much Will Apple Increase Its Dividend, Stock Buybacks?