Sam Boughedda

Investing.com — Apple Inc. (NASDAQ:) shares are slumping after Bloomberg reports that Apple Inc. is experiencing slowing demand.

The report cited people with knowledge of the matter and said that Apple was telling vendors not to expect a pickup in orders by 2022. 

Apple shares dropped more than 2 percent in Thursday’s trading hours, following a $157.80 low.

Company already feels the consequences of supply chain problems worldwide and was forced to cut its iPhone 13 production by about 10,000,000 units. In the 4th quarter of 2021, however, revenue fell due to supply chains challenges. 

While the iPhone 13’s demand has been reported to be declining, Wedbush analyst Daniel Ives disagrees and has increased the price target for Apple shares to $200, from $185, telling investors that his confidence has grown in the model. 

“Our iPhone 13 checks continue to be much stronger than expected with our belief that Apple is now on pace to sell north of 40 million iPhones during the holiday season despite the chip shortage headwinds,” Ives told investors in a research note.

“The focus of the Street has been on the lingering chip shortage for Apple (and every other tech and automotive player), however the underlying iPhone 13 demand story for Cupertino both domestically and in China is trending well ahead of Street expectations in our opinion,” he added.