Golden Delicious

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What's going on?

According to reports on Friday, Apple recently told its suppliers to increase their iPhone 11 production suggesting that the companys anticipating higher customer demand than previously for its $700-plus handset.

What does this mean?

Whenever Apple (or anyone else, for that matter) launches a new product, it forecasts how much demand it expects therell be and then places the relevant orders with its suppliers. But Apple always leaves some leeway to increase or decrease the size of those orders once it develops an even better idea of how many units itll shift. The company now appears to think it may sell more of its flagship new smartphone than initially forecast and has told its suppliers as much, reportedly asking them to produce 10% more iPhones than itd originally requested.

Why should I care?

For markets: Apples tree sprouts.


Shares of Apples Asian suppliers rose on Friday: theyll earn more from producing more iPhones as production processes are already in place. And Apples stock rose too. Its share price historically ebbs and flows in response to such reports (or their absence): investors may reckon they indicate strong iPhone sales to come. Those remain crucial for Apple: iPhones still contribute most of the companys sales, even though its now focusing on growing its more profitable services division. The slightly lower price tag on some iPhone 11 models may be keeping customers loyal whod otherwise have defected to arch-nemeses Samsung and Google (tweet this).



For you personally: James and the Giant Apple.


Beyond being a favorite among Finimizers, Apples sheer size means it represents 4% of the entire US stock market. Investors who bought the companys shares based on Fridays news therefore influenced the direction of the stock market as a whole, taking passive investors who might not have elected to buy Apples shares directly, but could still own a slice via exchange-traded funds which group together several stocks along for the ride.

Originally posted as part of the Finimize daily email.

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