Sep 29, 2023

Reports of overheating in the new iPhone 15 model could dent the appetite for Apple.

AAPL: Weekly Chart

AAPL: Weekly Chart

On the weekly chart, Apple (AAPL) stock has dipped from highs of almost $200 to trade at $170. But the next support could be $150.

Apple has only just released its iPhone 15, which may see sales problems due to a number of complaints about the phone overheating. In many cases, they were too hot to hold or shut down on their own.

Around half of Apple’s revenue comes from iPhone sales, and this development won’t help boost the stock price, which has dropped over 6% in the last month.

The complaints are related to Apple’s iPhone 15 Pro and Pro Max, which are cased in titanium. The company’s iPhone sales slipped 2.4% in the quarter to July 1, and the complaints about overheating could dent the company’s plans to turn that around.

One Twitter user, Apple Hub, shared a complaint about their model overheating, and it has 740k subscribers. The damage from a recall could be huge for Apple. A reporter at the Wall Street Journal said their phone heated up to 112 degrees by simultaneously charging it and using it with large processing needs.

Some are starting to discuss why it is happening, and TSMC’s groundbreaking 3-nm processor was the first source of blame; however, analyst Ming-Chi Kuo wrote that he thinks materials and design are the principal suspects:

“The primary cause is more likely the compromises made in the thermal system design to achieve a lighter weight, such as the reduced heat dissipation area and the use of a titanium frame, which negatively impacts thermal efficiency”. 

“It’s expected that Apple will address this through software updates, but improvements may be limited unless Apple lowers processor performance. If Apple does not properly address this issue, it could negatively impact shipments over the product life cycle of the iPhone 15 Pro series”. 

Investors in Apple should consider the effects of this development, as it may hurt the company later.

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