Apple stock price forecast: at risk as 2 fresh headwinds emerge

By:
on Sep 28, 2023
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  • Apple share price has been in a strong bearish trend in the past few days.
  • The stock has moved into a correction as it faces numerous headwinds.
  • The company is facing major headwinds as its growth slows.

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Apple (NASDAQ: AAPL) stock price has been in a freefall and could get worse in the coming days. The shares plunged to a low of $170 on Wednesday, the lowest level since May 23rd. It has retreated by more than 13% from its highest level this year, meaning it has moved into a correction zone.

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Apple has a titanium problem

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Apple stock price has crashed recently and the situation could get worse. The company is now set to address one of the biggest challenges in its history as the new iPhone 15 Pro versions came under scrutiny. 

Many users have reported that the iPhones are getting extremely hot, especially when charging and using heavy applications and games. Several users who talked to Wall Street Journal reported that the iPhone was reaching as hot as 122 degrees Fahrenheit. 

Experts cited the fact that the new iPhone Pro versions introduced titanium in their structure. This titanium, coupled with the thin nature of the phones, means that the phones cannot dissipate the heat well. As such, it is still unclear whether a software update will solve the issue. 

Therefore, there is a likelihood that Apple could see a bunch of iPhone returns in the next few months. It also means that iPhone sales could continue slowing in the coming quarters. The most recent results showed that iPhone sales dropped by 2.4% in Q2 to over $39.4 billion. This is notable since the iPhone accounts for Apple’s total sales.

Apple has also to deal with the strong US dollar. The US dollar index (DXY) has surged to the highest point in months. A closer look shows that the Chinese yuan is hovering near its lowest level since 2007 while the euro is approaching the parity level. Other currencies like the Turkish lira and Russian ruble have all plunged.

Therefore, the impact is that the iPhone is becoming unaffordable to most people. Couple this with the fact that many people are staying with their iPhones fr longer, which means that Apple’s growth could be limited.

Apple stock price forecast

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AAPL chart by TradingView

Making things worse is the fact that Apple share price technicals are not doing well. On the daily chart, the AAPL share price crossed the important support at $17196, the lowest swing on August 18th. The shares also retested the 38.2% Fibonacci Retracement level. 

Apple shares have also plunged below the 50-day and 100-day exponential moving averages (EMA) and the key support at $174.92, the highest point in August last year. Therefore, the path of the least resistance is lower, with the next level to watch being at $160, the 50% retracement point. This price is ~6.31% below the current level.

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