Analyst: Apple again cuts iPod, iPhone, MacBook orders

“Shares of Apple Inc. slumped further south on Wednesday amid a weakening macroeconomic outlook and reports of additional production cuts affecting not only the company’s handhelds, but also its red-hot notebook business,” Slash Lane reports for AppleInsider.

“Craig Berger, an analyst with FBR Research, told clients in a research note this week that the Cupertino-based company has reduced orders for its handheld devices for the second time in as many months, likely reflecting less-than-expected sell-through in the fourth [calendar] quarter of 2007, or thus far in the first [calendar] quarter of 2008,” Lane reports. “‘For both iPods and iPhones, we believe Apple was previously targeting a roughly 50 percent quarter-over-quarter decline for first quarter units, whereas, we now think the firm is targeting a 60 percent quarter-over-quarter unit decline for first quarter units,’ he wrote.”

“The FBR analyst said his checks indicate the company has cut its first quarter MacBook build forecast by about 50 percent compared to the prior quarter, down from 35 percent upon his last check.,” Lane reports.

Full article here.

MacDailyNews Take: The possibility exists that this change in iPod production might not be a sign of sales weakness, but rather a shift in expected sales from older models to the newer models with greater storage capacity that were just released on Tuesday. If this is the case, these changes would also telegraph that new MacBook models are coming soon.

33 Comments

  1. …revised MBP’s and MB’s might spur some buyers waiting for upgrades. People upgrading know that upgrades are pending. I realize that the moment I buy tech, it is out of date. However, I know the laptops are 12 to 18 months stale.

    Need faster updates!

    I don’t care about handhelds. My wife has an iPhone, I emjoy my iPod… but my biggest concern has been that Apple is not paying attention to what “had” been their core business.

  2. Difficulty with a story like this is that it is a half data point. As the article itself says at the end: “It’s unclear whether any said production cutbacks may have been a precursor to these new models. Similarly, it’s unclear whether reductions in MacBook build orders will be offset by demand for company’s new MacBook Air.”

    So orders for current models may be cut pending release of new models.

    This is an observation, but no conclusions can be drawn.

  3. silverhawk

    Since Apple doesn’t tell us what’s happening analysts can only speculate as to what’s truly going on based on indirect evidence hence he “thinks” sales may be declining. In fact he’s just being up front.

    You probably do a lot of “thinking” yourself and express opinions you “think” are correct without really knowing all of the facts.

  4. It could also be vaguely related to the preponderance of claims we’ve heard all over the various media outlets that the US is on the cusp of a recession (if not already in one) and Apple is implementing a measured response to avoid having too much inventory on hand when people start cutting back to the bare essentials.

    You know – only buying a new MacBook and a Nano instead of a Pro with a 30 inch monitor and an iPod Touch… ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    But that’s just what I think.

    And about this “thinking” thing. Everyone thinks. That’s where we get opinions. Some people manage to get paid for their opinions, which is pretty good deal if you can figure that out. Now, if everyone agreed with my opinion, it would be a pretty boring place very quickly, but then again I wouldn’t be posting here – I’d be making boatloads of money while people paid me to tell them what I was thinking. Despite all that, I still think all the time. I like thinking. That’s how I KNOW I’m alive. And if you don’t agree – well, that’s your problem, not mine.

  5. I agree with BuriedCaesar…..we are on or entering into a recession. Everyone is getting into the belt-tightening mode so it just makes sense to cut back on inventory. One can always ramp up orders if things turn around.
    This is just smart business.

  6. It may be denial or keeping my head in the sand and not wanting to face reality of slacking sales or anything bad for our favorite company… but I trully love MDN’s positive spin on things. It’s refreshing compared to the gloom and doom of every day media.

  7. WOW, Apple looks at economy and its model issues and decides to reduce new production in line with a slower market. Great decision.

    So wall street says the stock is bad…. cause the company makes good decisions……. weird, just weird. Only in America. !!

    Actually, I just may buy a few more shares. If it drops below say 115. All the analysis are saying that it still will end the year over 200 to 250. I would love that. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.