“Less than two months after Apple refreshed its smartphone lineup, investors are once again panicking about whether enough people are buying iPhones,” Seth Fiegerman writes for CNN Business. “Apple’s stock fell 1% Tuesday after tumbling 5% on Monday, shaving off tens of billions of dollars in market value. The stock fell after iPhone parts suppliers Japan Display and Lumentum Holdings cut their sales outlooks. Citing the Lumentum cuts, Goldman Sachs analysts expressed ‘concern’ in an investor note Tuesday that ‘demand for new iPhone models is deteriorating.’ Yet in the very next sentence, the analysts said Apple ‘could easily right itself given the bulk of demand comes in late December.'”

“‘Interpreting data points around demand from the supply chain is a dangerous art,’ Gene Munster, an analyst with Loup Ventures, told CNN Business. ‘Historically, investors have drawn the correct conclusion as many times as the wrong one,'” Fiegerman writes. “Case in point: Apple faced a similar Wall Street panic this spring after one of its key chip suppliers warned of ‘continued weak demand.’ Analysts raised concerns about demand for the $999 iPhone X. Then Apple reported strong earnings results and announced that the iPhone X had become its top selling smartphone.”

Apple's all-new 5.8-inch iPhone Xs starting at $999 and 6.5-inch iPhone Xs Max starting at $1099

Apple’s all-new 5.8-inch iPhone Xs and 6.5-inch iPhone Xs Max

“‘The Apple growth story being dead has been greatly exaggerated. We’ve seen this many times over the past few years,’ Daniel Ives, an analyst with Wedbush, tells CNN Business,” Fiegerman writes. “Ross Gerber, an activist investor and CEO of Gerber Kawasaki, says his firm has been tracking China sentiment closely and remains optimistic about Apple’s position there. ‘The Chinese sentiment hasn’t changed toward Apple. They are buying Apple products without any hesitation because of trade issues,’ Gerber says.”

Read more in the full article here.

MacDailyNews Take: Don’t panic. Profit instead.

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