“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.
Check it again! 50%
Glad to see MDN loading again this morning. YOu must have either incredible traffic or servers ran by hampsters. =)
I don’t like the days with no MDN
Notice how many times author uses the word “think.” It’s scary in that the well being of a company can rest on some analyhole using the word “think.”
Bought 50 more shares yesterday.
Soon, they’ll look cheap again.
…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 I realize that the moment I buy tech, it is out of date.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.
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.
Chicken Little, “The stock is falling.” I thought it was a good buy at 170. It was – good-bye to lots of money.
I guess I’ll sit on it. Ooops!
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.
toonie
Forget your coffee this morning?
In the U.S., Europe, and Japan, the MBA is the best-seller on the on-line Apple Stores.
Not bad!
there is no way that Apple cut orders by 50% to 60% year over year for an piece of the product line. The SEC needs to investigate this guy and his firm.
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…
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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.
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.
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.
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.
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Well, I am a “full” Apple fan too. My desktop is a fabulous 24″ aluminum iMac while my laptop is a MacBook Pro. I’m one of those who upgrade regularly. I was going to purchase a MacBook Air until I realize that it would be a downgrade for my purposes. Then I was prepared to sell my 8 GB iPhone and purchase the 16 GB. Well guess what? New contracts? Complications? Can’t be bothered.
If there is a recession and Apple wants to keep up the sales, then for God’s sake, don’t put up obstacles to easy purchasing.
Apple is trading around $118 right now, and its one year low is $83, so this has to be a great buying opportunity. The people who buy Apple’s stuff are not typically your sub prime mortgage borrowers who can’t meet their GMAC payments: its target market is primarily people who have money, and its margins have been truly fantastic. It can make loads of profits even at lower volumes, providing its margins hold up: sales growth isn’t everything; plus it’s taking into income 1/24th each month of certain unit sales in prior periods.
Last chance to buy AAPL below $120… again.
Man-o-Man… getting very close to Laura Goldman territory.
Arrogance apology, MDN?
Zune Tang: You’re late. I was expecting hear all about how this was in response to the stratospheric rise in Zune popularity.
C’mon fella, get on the ball!
Yesterday’s exuberance – toys, gadgets, hobbies.
Today’s reality – The Mac!
“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”
I too can hope. Cold, hard light of day, however, says this is desperate grasping for a reason to hope not what’s going on in the real market place.
Tunes players and phones are subject to instant abandonment by Apple’s target demo – soon after the rush is over, they have no interest in paying Steve’s prices just because he’s cool.
No apologies needed from MDN. The call Laura Goldman made was indeed wrong.
The difference between conditions today and when she made that call are somewhat changed.
The view is that consumer spending is going to go off a cliff. Of course Apple is being sold.
I am staying with it all the way. I think there are going to many pleasant surprises as quarter by quarter Apple will exceed all expectations…
And the stock is a super bargain right now too!
But please don’t tell anyone for fear that the stock might just jump up again and payday isn’t till next week <GRIN>
Even if the “bush economy” messes with the price of the stock and it clearly has… sooner than later Apple’s stock will jump and we all want to be on that band wagon… if for no other reason that greed and profit!
And that’s a good thing!
The is a lot of FUD occurring at the moment. Doom and gloom everywhere.
What the author fails to realize is that a 50% reduction in orders from Xmas quarter to Spring quarter is purely seasonal. Apple alway sell far more iPods in the holiday season.
All I know is that Apple’s financials are glowing at the moment and they have multiple sources of revenue established and new ones building. The company isn’t recession proof but as they demonstrated in 2001, their goal is to innovate even during economic slow downs. No other company is as aggressive as Apple in that. And that is why they will continue to succeed.
Appears Apple is hunkering down for a deep recession. Thank you Mr. Bush and Mr. Greenspan.