Handelsblatt1 hour agoBusiness1 min readGermany

Wall Street: Is Apple cutting back on iPhone 18 production?

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A report on market movements: OpenAI sales calculations, high AI demand at Lumentum, reduced iPhone orders at Apple, SpaceX competition for mobile operators and weak prospects at Delta Airlines characterize the current market environment.

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Why It Matters

The market environment is characterized by high interest rates on US government bonds and fluctuating raw material prices.

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The sell-off was triggered by the news that OpenAI's annualized sales were only around $50 billion instead of $70 billion. However, the main issue was the different calculation of gross and net sales, not an abrupt collapse in demand. OpenAI continues to target around $70 billion in net sales on an annualized basis by the end of the year.

Lumentum also provides tailwind for the AI complex: The group describes optical components as practically sold out by 2029 due to the enormous AI demand.

On the other hand, Apple is having a negative impact and, according to Nikkei, is reducing component orders for the iPhone 18 by at least 15 percent due to weak demand. At the same time, SpaceX is attacking the US mobile market with Starlink Mobile, putting AT&T, Verizon and T-Mobile under pressure.

Delta Airlines shares are trending weaker after the numbers, primarily because of the missed outlook. With ten-year US government bonds at around 5.25 percent and Brent at around $103, the macro environment remains challenging. The next big test will follow next week.

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