“U.S. stocks were set to open lower on Tuesday in thin trading volume following the Christmas holiday as losses in Apple and a bunch of chipmakers weighed,” Sruthi Shankar reports for Reuters. “Apple’s shares fell 2.6 percent to $170.47 in premarket trading after Taiwan’s Economic Daily reported the company would slash its sales forecast for the iPhone X in the quarter”
“Shares of Apple suppliers, including Broadcom, Skyworks Solutions, Finisar and Lumentum Holdings, fell between 1.47 percent and 3.4 percent,” Shankar reports. “Most markets around the world, including parts of Europe and Asia, were closed on Tuesday.”
Shankar reports, “The indexes clung onto small weekly gains last week, after a long-promised Republican bill to cut corporate tax rates was ratified and a short-term spending bill that averted a government shutdown was approved.”
Read more in the full article here.
MacDailyNews Take: Post Christmas AAPL sale!
Even if a particular data point were factual it would be impossible to accurately interpret the data point as to what it meant for our overall business… There is just an inordinate long list of things that would make any single data point not a great proxy for what’s going on. Apple CEO Tim Cook, January 23, 2013
Did it drop because of the plethora of class action suites or lack of demand?
I’d say, with conviction, it dropped due to class action suites. But it’s a breeze to claim lack of demand for manipulative purposes.
Class actions suites? Really, you think that had a impact? I will tell you why it is not selling briskly as other iPhones in the past. That would be because it is $1000 dollars to get one. You can get an iPhone 6s for half the price and it will do 95% of what the iPhone X does. Albeit a bit slower. Also AT&T had a special, get an iPhone 8, and you get a second one free. I know because that is what we did.
correct, it is overpriced.
From the consumer perspective, I would agree that the BOGO deal on the iPhone 8 might appear to be negative for AAPL, but that’s the wrong perspective. From Apple’s perspective, AT&T just purchased two 8’s @ $699 instead of one X @ $999 (assuming base models). Yes, I know I’m using retail prices, but since none of us know the wholesale prices we can’t use those numbers.
So Apple saw $300 more in revenue from your transaction with AT&T, on products that have higher margins. And they’ve successfully extended “stickiness” by deploying two devices instead of one, which is positive for their Services business.
Tell me again how this is a bad thing for AAPL?
Sorry but $1000 phone is ridiculous I don’t care if it’s made by Apple or anybody else
But $800+ isn’t? FYI. All phones in the same class..are that much. There is no equivalent, so $1000 is the price point. They aren’t going to make it the same price as the 8.
Speculation about Apple(AAPL) cutting component orders for the iPhone X because of flagging sales may be just a misunderstanding, according to a report this morning from Jun Zhang of Rosenblatt Securities.
Zhang, who has a Buy rating on Apple(AAPL) shares, and a $180 price target, writes that his own research — he does not cite specific sources — “indicates no further order cuts after the holiday season.”
Zhang is modeling iPhone production in the March quarter of 35 million, which is about the same as was mentioned in the report from Sinolink cited by Bloomberg, and higher than the 25 million cited by JL Warren Capital.
Zhang writes that the “recent estimate adjustments could be attributed to previously very bullish views on the iPhone X cycle.”
He also thinks the folks looking at this “could be confusing the market as we believe they are referring to previously mentioned iPhone 8/8 Plus production cuts.”
“We previously wrote about iPhone 8/8 Plus production/component order cuts,” relates Zhang. “We have not seen another round, but we were initially very cautious about 8/8 Plus sales, so we are not surprised by the four to five million production cut in the March quarter.
Zhang writes that he specifically sees no cuts to parts for ” 3-D Sensing,” a reference to the ” Face ID” feature in the front-facing camera of the iPhone X. And he’s also seen no cut in orders for OLED-based phone panels. Those two data points are “specific components for the iPhone X,” he notes.
Apple (AAPL) shares this morning are lower by $4, or 2.3%, at $171.01.
More at Barron’s Tech Trader Daily blog, http://www.barrons.com/tech-trader
A $1,000 iPhone is an IQ test for Hipsters, Trend Followers and Apple Fanbois. The more expensive phone does not make calling better or easier, won’t get you laid New Year’s Eve and will wear out just about as fast as your last iPhone.
Apple’s pricing was testing demand destruction and they appear to have gotten their answer.
Keeping my 7 for another year.
You’re so special, just go with Android.
I have my iPhone X, my wife has her. My father, my mother, my brother as well. ( I’ve got no sister, sorry.) Sure that demand now declines.
perfect date for robbing the market again, we’ve seen this fake news cheat four times this year, price collusion easy money, especially in zero oversight environment.
apple can’t officially respond, crooked price manipulators know this vulnerability, time their cheats away from earnings and when institutional trading essentially on hold, never get called out by SEC, esp in this political climate
This is about market saturation and the the economy stupid. This shouldn’t be a problem though, the 1% can pickup the economic slack now that they’ll be receiving a tax cut.
I’ve been anticipating a Merry Christmas post from MDN like last year’s.
“Dear MacDailyNews readers and commenters,
Amidst the Christmas news slowdown, we can all look forward to 2017 which — with expectations of new Macs (desktops, especially), the possibility of Apple Watch 3, the tenth anniversary “iPhone 8,” next-gen iPads in calendar Q1, the ever-continuing rumors of an Apple Internet TV service, and much more as Apple opens and finally moves into the massive Campus 2 — we expect Apple will double-down on execution and quality, making for their most successful year ever!
As we enjoy spending time with family and friends, we want to thank you so much for visiting MacDailyNews throughout the year and for making us a part of your day. We really appreciate it!
An extra special thanks to those who regularly send us links to interesting articles – you know who you are – thank you, thank you, thank you!
Merry Christmas and Happy Holidays!
– MacDailyNews”
Haven’t seen it, so I’m stepping in off topic like to wish everyone a safe and happy Christmas Holiday and a great new year. Thanks for making MDN such a great place.
back at ya’, RR.
Hi! As a member of the iPhone upgrade program, the iPhone X makes perfect sense. I’m not buying a $1000+ (also the price of the new Note, btw) I’m buying an increased monthly payment of roughly $13. I think Apple priced this phone according to its momentum that is driving users towards its upgrade program.
Also, it is far and away the most amazing phone I have ever used. And while I’m sure that is obvious to anyone, just how amazing it is should not be under estimated.
Don’t be a naysayer now, it’ll look bad in a few weeks when apple destroys market expectations.
Exactly right. I have an iPhone X too and those who underestimate it’s advances (usually by virtue of not owning one) are fools.
also a member of the “upgrade” program. still haven’t upgraded to either an iPhone 8 or (ha ha) an iPhone X. the first because i would have to pay more for a 256g model that is no different from my current 128g iPhone 7, since they suckered me into eliminating that sized phone without adding any value to the “regular” model. the second because i’m not THAT much of a sucker
Anal-cysts right on specious self-serving schedule! Well until, also as usual, Apple’s next reporting proves they were COMPLETELY WRONG.
The ‘experts’ can yak yak themselves silly about the why – but it simply cost too much… period.
IMO There’s a line they crossed and now the result is being felt. If I had to replace my 6 today no way would I go that $$$. I have Better places to put my money.
It’s just a Phone.
iPhone eXperimental – over priced and ugly as sin notch. That’s a combination for failure.