“Apple’s stock has entered ‘bear market’ territory,” Jay Yarow reports for Business Insider. “It’s down 20% from its September 21 intraday high of $705.07, according to Bloomberg data. Why is the stock on a big losing streak? A bunch of reasons.”

“One theory being advanced by analysts is that investors are selling shares because they think capital gains taxes are going increase during President Obama’s second term,” Yarow reports. “Another reason is that Foxconn leader Terry Gou said, ‘It’s not easy to make the iPhones. We are falling short of meeting the huge demand.’ This quote has a few implications for Apple.”

“The first, and most obvious implication, is that Apple is not going to have enough phones to meet demand. Therefore it’s going to miss on iPhone estimates for the quarter,” Yarow reports. “There’s another angle to the story. Tim Cook’s specialty is supposed to be supply chain management. He’s supposed to be able to forecast iPhone manufacturing. The fact that he got this wrong is not good…. Apple misjudged its ability to make the iPhone 5. And now it can’t meet demand.”

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