“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.
MDN – your analysis is wrong as usual.
If new product was coming on board, Apple would be ordering it.
You think they stop production of one iPod, wait until they are all sold, then start production on a new iPod???
Apple is chopping product delivery big time. This is bad, bad, bad news. The stock is down another $3 as I write this.
From over $200 to under $120? Sheesh! The stock has to go up nearly 90% to get to its previous high.
Apple is now zigging while the economy is zagging. Out of sync with its high-priced gadgets in a low-cost, can´t afford it recessional world. And this world will be this way for another year or two….or longer. Unfortunately.
I love how many blame Bush for everything.
LOL.
Where are the HIllary and Messiah Obama solutions to quickly remedy the economy????
Answer: More Taxes!
” . . . or servers ran by hampsters.”
Whew ! I was wondering why I kept smelling elderberries every time a page loaded.
Dear Apple,
Please stop doing things that I consider great… I AM EFFING TIRED OF WATCHING MY STOCK TANK!!
Your Pal
Tom
Hey Handy,
STFU.
Now.
Have a nice day!
So Wallstreet, lemme get this straight. If I am a 1999 circa .com business and I ignore the winds of change and rip off my stockholders and crash the economy I am bad. If I am Apple in 2008 and I start throttling back on my luxury microelectronics because all the economic indicators show the mortgage and wallstreet guys ran the economy into a ditch again, I am a bad guy too. Well Apple should stay the course. The wallstreet and Mortgage folks are obviously looking for scape goats. Why should Apple make quick off the cuff decisions to save the hides of speculators?
Just my $0.02
Ray, we’re ALL “speculators.” It’s saving the hide of “investors”, if you’re happier with that term, that would not be a bad thing, were that even possible to do here.
Yeah, this statement is pretty alarmist unless you taking into account what SKUs are being dropped…