Apple shares take 3% hit amid speculation about iPhone production cut [UPDATED]

[This article was originally posted at 11:54am EDT and has since been updated. Please see below.] “Apple shares took a 3% dip Tuesday amid speculation about a cut in production of the trendy iPod-inspired phone. The chatter that sent the stock down was that Apple was reducing its production of iPhones from “9 million units to 4.5 million units, according to a note from Miller Tabak & Co.,” Scott Moritz reports for

“The note cites talk among traders at Goldman Sachs and also includes speculation that the cuts may be coming in iPod production,” Moritz reports.

“The hotly anticipated iPhone generated a great deal of attention and initial sales were brisk. But as reported, the demand was less than some had anticipated. People familiar with the company said at the time that Apple were prepared to sell out the 1 million phones it had ready for its weekend debut,” Moritz reports.

Full article here.
Lots of chatter, speculation, and rumors, but no facts. When we read something like this, the first thing we do is wonder who’s talking and what, if anything, is in it for them if Apple stock prices move in either direction.

Apple’s goals have not changed: 1 million iPhones by the end of this quarter, 10 million iPhones in 2008.

[UPDATE: 2:32pm EDT: Miller Tabak analyst Peter Boockvar said that his firm “authored no such note on Apple. Instead, he said, gossip was passed along during a conversation and was subsequently overblown. ‘Disregard it. There’s no note on Apple today,’ Boockvar said. ‘It’s pure noise,'” AppleInsider reports. Full article here.]


  1. The short-term “play-traders” buy and sell on one thing only…Story Headlines…and the people who make the headlines know it. It shafts the longer term investors who do their homework and read beyond the headlines…what a shame, people are so fickle and pathetic. It’s a shame to be forced to play a game you shouldn’t have to play. Do your homework, people!

  2. However many iPhones were available for launch weekend (and we don’t know that number), apple DID sell them out that weekend. Remember how all of the apple stores showed none in stock by Monday morning? AT&T stores sold out of their launch phones even more quickly. So where is this bullshit coming from that they had a disappointing opening weekend? It really does make you wonder who is getting paid to plant stories like this. Remember, the wireless industry is huge, mostly evil, monopolistic, and has deep, deep pockets for PR campaigns. Remember that bullshit piece last week where some “analyst” said that in Apple stores, no one is looking at the iPhones anymore? (Yeah, right. I went to buy a MacBook a couple days ago and the iPhone table was packed.) This is more of the same FUD garbage. It’s sad that people believe this stuff, but people can’t wrap their brains around the fact that Apple is becoming the dominant player in the computer industry. It confuses and frightens them. They don’t know what to do.

  3. “However many iPhones were available for launch weekend (and we don’t know that number), apple DID sell them out that weekend.”


    No, Apple DID NOT sell them out. Selling out means the entire production run was gone and that more would have to be manufactured.. If the stores are receiving daily (or every other day) shipments, the production run IS NOT sold out. If iPhones are on back-order for several weeks, it means that more are being manufactured in China and that they did in fact sell out of the inital production run. That never happened.

  4. The rumour of production of iPod/iPhone being halved comes on the very same day as another report of production being ramped up of a PCB for a new iPod due in September, which would directly correlate with an existing product line being dropped, leading to perhaps a halving in orders for existing models. So both “rumours” are probably true, with the real news that there is a new iPod coming, very soon, and no overall drop in production at all.

  5. Ugh, to all the naysayers. Apple has not ammended any of its sales targets. Golddigger Sachs has created a “rumor” that leads to an artificial dip ion the stock, allowing them and their cronies to buy one of the hottest stocks out there at a big discount. It’s stock manipulation which is illegal, but difficult to prove since they’ll never be put to task to divulge their supposed “source.”

    Is Apple strong? Yes. Is it going to make its sales targets? Yes. There is a great deal of interest in the phone yet, but many are waiting a bit to see things p[lay out (like me). I’m certainly getting one, but want to see what the first update brings to gauge Apple’s approach to their subscription approach to updates.

    The stock will rebound.

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