“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.

SEE ALSO:
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Apple’s Asian suppliers fall on report of canceled iPhone XR production boost – November 6, 2018
Nikkei claims iPhone XR production cuts, Apple stock drops over 3% – November 5, 2018
Apple’s revolutionary iPhone X was the world’s best selling smartphone in Q118 – June 14, 2018
Nikkei again claims ‘weak demand’ for iPhone X despite much evidence to the contrary – February 20, 2018
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Apple supplier says report of iPhone X production cuts was overstated – January 30, 2018
Another January, another misleading iPhone supply cuts story from Nikkei – January 29, 2018
Apple stock drops after Nikkei report of iPhone X production cut – January 29, 2018
Canalys: Apple shipped 29 million iPhone X units in Q4 2017; world’s best-selling smartphone over the holiday season – January 23, 2018
Reports of Apple cutting iPhone X orders make no sense – January 2, 2018
Apple stock tumbles on one poorly-sourced report of low iPhone X demand – December 26, 2017
Apple and suppliers shares drop on report of weak iPhone X demand – December 26, 2017
Nikkei: Apple to decrease iPhone production 10% in first quarter of 2017 – December 30, 2016
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Japan’s Nikkei, The Wall Street Journal blow it, get iPhone demand story all wrong – January 16, 2013
Did Apple reduce 4-inch Retina display orders due to improving yields? – January 15, 2013
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Apple iPhone suppliers decline on report orders cut by 50% – January 15, 2013
Apple swoon erases $17 billion from stock market – January 14, 2013
Apple iPhone 5 production cut signaling a new product release? – January 14, 2013
Apple drops to 11-month low on old reports of component cuts – January 14, 2013
The strange math of Apple’s alleged massive iPhone 5 component cuts – January 14, 2013
UBS analysts: Apple iPhone component order reduction ‘old news’ – January 14, 2013
Apple pulls down U.S. futures – January 14, 2013
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