“Apple was very conservative in its projection for the holiday quarter, so it is likely to make the guidance and has the possibility of exceeding quarterly guidance of higher end models has partially offset the lower volume,” Edward Ambrose writes for Seeking Alpha. “This performance should lead to a recovery in the depressed stock price. It is a strong buy.”

“A survey by Consumer Intelligence Research Partners demonstrates the popularity of the XR, at $749, which accounted for 32% of sales,” Ambrose writes. “The next most popular iPhone is the XS Max at $1,099. This is followed by the XS at $999. The older 7 and 8 models made up 33% of sales. In these versions, the [Plus] models were popular.”

“Analysts have watched the production cutbacks in the Apple supply chain,” Ambrose writes. “The question that cannot be answered is, what was the production rate originally planned for the first quarter. With the growth seen last year, that could be at around 80 million units. This would require large cuts and still leave them with excess inventory. The pessimism might be overdone.”

Read more in the full article here.

MacDailyNews Take: “The pessimism might be overdone” is a late entry for understatement of the year, but Ambrose got it in just under the wire!

For the current quarter, Apple has guided for revenue between $89 billion and $93 billion which, if achieved, would be a new all-time quarterly record.

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The last time Apple’s stock price fell this much, shares rallied 75 percent in 12 months – December 31, 2018