>> The jitters over weak iPhone sales are back again, sending Apple shares down about 4% Friday, and dragging with it the major market indices. Reuters Apple corespondent, Steven Nellis in San Francisco explains.>> We're in the middle of the pre-Apple earnings iPhone jitters. This happens almost every quarter.
Apple suppliers start to put out their own earning statements, start to give forecasts for the quarters ahead. Analysts are to take that information and put it into their models and come up with something about what Apple is gonna say when it reports earnings on May 1st. What they are seeing is not very good.
So far, we've had a very big supplier, Taiwan Semiconductor, say that they are gonna have a forecast at the low end of the spectrum, right? Because global smartphone business is going to be soft. Well, that probably means that Apple is gonna be soft since it's one of the most important players in the global smartphone business.
>> Late Thursday, Morgan Stanley cut it's price target for Apple, and investment bank Canaccord analysts said he anticipated weaker sales of the iPhone 10 in the first half of the year in the US and China due to the $1,000 price tag. Apple shares have been facing a volatile first quarter, and after hitting a record high in March, the stock has dropped and erased all gains for the year.