Most technology stocks have taken investors on a rollercoaster ride throughout the year, and Apple has not been the exception.

Although the share price was volatile at the beginning of the year, a downward trend began after the result report of Q2 at the end of April.

According to data provided by S&P Global Market Intelligence, Apple’s shares are down 17%. A potential economic slowdown and supply chain shortages are mainly responsible for investors’ concerns. 

Siri… what’s going on?

Following Apple’s second-quarter financial results in late April, investors became pessimistic. While Apple beat analysts’ expectations for both top and bottom lines, investors were attracted to comments made by company management. 

During Apple’s earnings call, CEO Tim Cook said that the company was not immune to supply chain problems caused by COVID-19, chip shortages, and the Ukraine war. 

According to Luca Maestri, Apple’s chief financial officer, it is estimated that Apple’s supply chain problems could have an $8 billion impact on its sales in the third quarter. 

“Supply constraints caused by COVID-related disruptions and industrywide silicon shortages are impacting our ability to meet customer demand for our products. We expect these constraints to be in the range of $4 billion to $8 billion, which is substantially larger than what we experienced during the March quarter,” Maestri said.

Apple’s stock dropped when investors learned its sales would be affected.

Siri… what do I do?

On July 28, Apple will release its third-quarter results, which investors will want to keep an eye on. It will be interesting to see whether Apple has experienced any pullback in consumer demand due to supply chain problems. 

Apple investors could likely see more short-term volatility in the stock as the market reacts to a potential economic slowdown as inflation remains at its highest level in nearly 40 years.

Even though Apple may face temporary supply constraints in the short term, it remains a significant investment in the long term.

Apple shares are down this year, but the company still has a very strong financial position, so investors may want to consider buying some shares.