the Dow Jones Industrial Average (DJINDICES: ^ DJI) failed to keep up with the other major stock indices on Wednesday, roughly unchanged at 2 pm EDT. The pandemic situation in the United States has not changed: confirmed cases are emerging and some states have been withdrawing reopening measures to curb the spread of the virus.
Apple (NASDAQ: AAPL) Shares rose on Wednesday, while shares of Boeing (NYSE: BA) headed down. Apple is reportedly taking steps to reduce delays with its upcoming iPhone 5Gs, and Boeing was criticized in a government report related to the 737 Max.
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Apple works to avoid 5G delays
Apple is expected to release a list of 5G-enabled iPhones later this year. Less expensive models will use a slower 5G standard, while higher-end models are expected to use the mmWave 5G standard much faster.
The pandemic has caused some disruptions to Apple’s supply chain, and the company is trying to minimize the possibility that it will be forced to delay the launch of its new phones. According to a report by Nikkei Asian ReviewApple currently faces delays of between one and two months for the mass production of its iPhone 5G.
NikkeiSources said Apple is trying to reduce delays, with the company and its suppliers working overtime to make up for lost time due to factory closings. Sources also said Apple is now targeting 80 million iPhone 5G shipments this year, down from a previous target of 100 million.
In the event that 5G iPhones are delayed, Apple is reported to be increasing production of its older iPhones. The company has asked suppliers to build more than 45 million units of older models for the second half, according to NikkeiFonts including iPhone XR, iPhone 11 family, and iPhone SE.
The tech giant will need to convince consumers that upgrading to an iPhone 5G makes sense in an economy ravaged by the pandemic. With COVID-19 cases currently on the rise in some U.S. states, and with the possibility of a second wave coinciding with the flu season, renewed requests to stay home later this year could reduce the demand for expensive Apple products.
Apple shares rose 0.5% on Wednesday afternoon. The stocks are only slightly below their 52-week high.
Report finds Boeing made mistakes with 737 Max
Reuters reported Wednesday that a report by the Office of the Inspector General of the US Department of Transportation found that Boeing did not submit certification documents to the Federal Aviation Administration (FAA) regarding the flight control system that was the guilty of the two fatal accidents that caused 737 max.
The report says that Boeing presented the flight control system in question as a modification of an existing system. For that reason, “it was not an area of emphasis” for the FAA. The report also included allegations of “undue pressure” by Boeing management on safety certification workers, but said all formally informed instances were addressed.
This report comes a few days after the FAA began evaluating the updated flight control system on the 737 Max through certification test flights. The 737 Max may return to the skies this year, but Boeing remains under criminal investigation by the US Department of Justice. Boeing shares fell 1.2% on Wednesday afternoon.
