[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 TheStreet.com.
“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 TheStreet.com 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.]
buying this dip!!!
yes
THIS ONE GOES SO MUCH HIGHER
but Apple can’t get too cocky. you can’t fight everybody on all fronts?!
Damn. Why don’t I have money available to buy? So many people run scared on the smallest of announcements.
People are DUMB!
I was going to take some profits today too and then this. Think I’ll wait until people start buying the dip.
Investors can be so fickle.
@dd,
but you are one of the “People”….. does that make you DUMB?
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!
There is a drop in production of OLD iPod models – as Apple stated there is a transition coming (with some cost attached)
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.
On the eve of iPhone launch, Steve Jobs was asked if they would sell out of their initial production run..
Steve Jobs said, “I don’t know, but I could see it happening.”
It didn’t.
Come on Steve Jobs, fill us in.
“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.
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.
Just another crooked analyst at Goldman Sachs creating a buying opportunity. How this kind of activity is allowed to go on is beyond me.
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.
Apple didn’t have 1m units for the opening weekend otherwise they wouldn’t have sold out temporarily. If Apple are targettig 10m in the first 18 months (end of 2008) Then what would the 9m refer to? 10m minus the 1m they supposedly had ready? Even then I doubt Apple would place one fixed order for an 18 month period. Even if the numbers are somehow correct it’s just so flimsy in its reasoning.
I know this has been beat to death, but I have to admit that the following piece from the article annoys me:
“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.”
Of course there never was such speculation, the 1 million number was pulled from an anal orifice. But it’s also so, so illogical. If Apple had anticipated selling 1 million phones over the opening weekend, then how is it that they were all sold out, many on the first day. You can’t “expect” to sell a million phones if you only have 250,000 (or whatever) in stock.
Meanwhile, back at the ranch, consumer confidence is at a SIX YEAR HIGH going into academic year purchase season, then comes CHRISTMAS!
I like the phone but it’s too expensive. I ride the BART every day and I have yet to see one person with one. Also, I have not seen any at my local gym.
Anyone who’s used an iPhone will know these are game changers and so far ahead of the competition it isn’t even funny. Be patient. Apple will deliver. Every single person I’ve shown my iPhone to has been blown away and gone out and bought one. Immediately. Keep the faith people. Keep the faith.
Those “people” in that article are all related to Arty McStrawman…
“….If Apple had anticipated selling 1 million phones over the opening weekend, then how is it that they were all sold out, many on the first day.”
@Falkirk
No one really knows how many Apple intended to sell on its first weekend, but just because the stores were sold out does not mean that the production run was sold out.. Each store can only take so many palettes of product at any given time. The fact that all the stores had more iPhone shipments in the following day or two means that there were still plenty more iPhones available at the local warehouses.
Selling out means manufacturing another run of product from China, a process that would take at least 10-14 days.
WTH is with these twitchy investors. jeez.
“Reportedly, Apple is going to…” OMG SELL SELL SELL!!!!!
“Rumours abound that Apple…” OMG BUY BUY BUY!!!!!
“Apple fell short of ANALysts’ expect-” OMFG DUMP ENTIRE STOCK!!!!
just remember kids, this is what cocaine does to you
even MDN can’t seem to get this right:Apple intend to sell ten million by the end of 2008. not “in” 2008
Let’s not be too concerned about the short term blind and blinkered activities that are going on and trust that despite it all..:
– Apple will prevail
– it will have many more customers
– and happier ones
– and it will lose no customers
– and all that the competitors can do about it is play annoying little games.