Apple slides after one of its facial recognition suppliers cut its outlook

Ok, I think we really are entering into a major economic slowdown for various reasons.

MSNBC

One of Apple's facial recognition suppliers, Lumentum, reduced its outlook for the quarter, citing a reduced shipment request from one of its biggest customers.
Apple shares slide on the news.
The announcement adds to the speculation that Apple is reducing production of its latest iPhones.

Ok. When people have money they have the most up to date phones. This is indicating to me that people are starting to feel the inflation squeeze and lack of real wage growth which is the housing market is going to continue it's slide.

Market Watch

Only 13% of Americans say they plan to buy a home within the next 12 months, marking the third straight quarter in which fewer people expect to become homeowners.

I'm not surprised. As someone who makes more than the average person does in my area and in the country (above $20 an hour) I can tell you right now that money just isn't going as far as I need it. If I'm strapped for cash and barely spending money on anything I know the 50% country that makes $15 or less is really strapped.

Forbes

Personal loans surged to a record this year and are the fastest-growing U.S. consumer-lending category, according to data from credit bureau TransUnion. Outstanding balances rose about 18 percent in the first quarter to $120 billion. Fintech companies originated 36 percent of total personal loans in 2017 compared with less than 1 percent in 2010, Chicago-based TransUnion said.

People just aren't making enough money anymore.

Healthcare cost

Last week, we reported that the survey indicated a small but significant increase in the uninsured rate among working-age adults since 2016. In this post, we look at people’s views of the affordability of their health care. The Affordable Care Act Tracking Survey is a nationally representative telephone survey conducted by SSRS that tracks coverage rates among 19-to-64-year-olds, and has focused in particular on the experiences of adults who have gained coverage through the marketplaces and Medicaid. The latest wave of the survey was conducted between February and March 2018.1

Money isn't buying as much as it used to and the Fed can't stop raising rates. Get ready for some seriously rough economic waters in the future.

a reply to: toysforadults

Chinese stopped buying iPhones. Chinese Android-based smartphone brands from companies like Huawei and Xiaomi are replacing apple. Then to make things worse Apple puts out the iPhone XR and hurt there own market. They made a cheaper phone that does everything the iPhone x does but 250.00 cheaper. Apples problems are half self induced and partly due to the trade war with China.

Could it be true that iPhones are reaching a peak of circulation? Surely not.

There are only so many people in the world who want - and can afford - the over-priced non-US-made Apple device.

Apple is over-priced anyway.

originally posted by: paraphi
Could it be true that iPhones are reaching a peak of circulation? Surely not.

There are only so many people in the world who want - and can afford - the over-priced non-US-made Apple device.

Apple is over-priced anyway.

Apple is and has always been overpriced.

I read an article that Apple is now switching to all luxury items from next year, but they haven't announced it yet. Their items were always considered luxury, pretty with good but not the greatest hardware, and always overpriced. It just makes sense to make that move.

Problem is, people are hooked. Many will not be able to afford them at new prices and will have to take out loans to buy phones.

Also, good thread op, thank you.

originally posted by: dragonridr

Apples problems are half self induced....

That's an extremely conservative estimate. Apple has been screwing over their user base for over a decade long before any of the trade drama.

I can say this with confidence because I've been on their teat for the whole time. Sort of amazing the $h1t they've shoved down the pipe and right into peoples lives. Still better than the alternative though.

Jobs was a true evil genius and it seems he left Tim Cook with explicit instructions on how to drive it right into the ground while still making billions.

a reply to: toysforadults

Expensive jewlery.

They didn't invent the tech, they just stole it better and out-manufactured competitors.

Now it appears that others have learned the lesson.

www.cnbc.com...

Homebuilder shares fall after JP Morgan says housing recovery will be 'tepid,' downgrading 5 stocks in sector

The dollar index is back up around 97 with the higher interest rate forecast and Brexit decision this week.

a reply to: Cauliflower

So people are moving out of the lb and back into the dollar. The Fed is raising interest rates again makes sense

That is the issue though there is going to be pain in the markets because of the amount of debt people have and people have to take on more debt just for the basics

Apple just has to diversify and come up with new toys.

We all forget apple only rose so high on the innovation of the iPhone.

Obviously sooner or later other manufacturers will and have caught up and people will get weary of buying such an expensive toy every year.

They have the money and they are diversifying but they need a new blockbuster product which doesn’t come along easily.

a reply to: Willtell

I agree to an extent but most people I know with Iphones will never switch to Samsung

www.cnn.com...

I'm telling ya, get ready for the economic slowdown we are already in, don't listen to Fox news

originally posted by: dragonridr
a reply to: toysforadults

Chinese stopped buying iPhones. Chinese Android-based smartphone brands from companies like Huawei and Xiaomi are replacing apple. Then to make things worse Apple puts out the iPhone XR and hurt there own market. They made a cheaper phone that does everything the iPhone x does but 250.00 cheaper. Apples problems are half self induced and partly due to the trade war with China.

Last phone I bought was a ZTE, which is also a Chinese Android, phone, it's a really good phone in my opinion better than the iPhone and cheaper.