Apple’s parts shortage and other fairytales

“Following the quake in northern Japan, mighty Apple’s shares fell. Investors and analysts worried that the supply chain behind iPads and iPhones might have taken serious damage from the disaster,” Anders Bylund writes for The Motley Fool. “That, in turn, would lead to lower sales of said gadgets.”

“I’m here to tell you that those worries got a bit out of hand. Between the market close on Monday and the closing bell on Wednesday, Apple lost some 6.9% of its market value. That’s nearly $22 billion in market cap going up in smoke,” Bylund writes. “It ain’t all that bad, folks.”

MacDailyNews Take: Shhh! Anders must really hate buying opportunities.

Bylund continues, “The two components mentioned most often as pain points in the Japanese part of Apple’s supply chain are flash chips, for which Toshiba fulfills about 35% of global needs, and the more esoteric BT resin, for which Mitshubishi Gas Chemical and Japanese rivals reportedly control 90% of the world’s supply. Let’s attac[k] these concerns one at a time.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Brawndo Drinker” for the heads up.]


  1. Again, name me one other company that is in a better position then Apple (cash, components, control, OS, App store, iTunes, etc)?

    Give me some names? Anyhow?

    Better yet, why isn’t this very thing having a much greater impact on the PC manufacturers and MS? No one is buying PC’s that I am aware of. Governments (MS’s cash cow) is broke at the Federal and State level. Big businesses are buying iPads and iPhone by the truck load and with everyone else in the MP3 market basically calling uncle and quiting (Zune), why did Apple take a hit?

    WTF? Dell, HP, MS?! Come on, I wouldn’t invest a freak’n dime in their business models and would be looking for the nearest life raft.

    1. The reason for the drop is computers.  Most of stock is traded with computers today, when they see a trend they hop on it.  It is a big problem with our system, espicaly for small investors.  However there is a lot to consider beyond the parts, who has the contracts, how will the supply chain be changed if it needs to be, etc.  The big thing is all electronics manufactures are in the same boat, so there is no real advantage.   

  2. Just remember Anders Bylund of MotleyFöol is an Apple-hater. He’s the one that wrote an article where he predicted Apple would be the Worst Stock to Hold in 2010.

    He also is the idiot that said that T-Mo’s G1 had pre-sales of 1.5M. Remember that?

    So, take anything from Anders with a HUGE grain of salt.

  3. Apple has large upfront buys of NAND and Displays and they get first Dibs and locked in pricing. By the time Apple needs to do the next buy of NAND, the supply should be back to normal and commodity pricing will not affect them, except Apple’s competitors’ margins are screwed.

    Apple is the largest customer of Hon Hai. If a component is missing, the whole assembly line has to close. Before closing down the apple assembly lines, they take resources away from others companies lower down on the chain and shut down that assembly line instead. Hon Hai is not going to take the chance of losing its biggest customer, nor is it going to send the workers home on its most profitable assembly line. Really bad reporting on this parroted on mainstream business TV.

  4. A lot of the comments on MDN as AAPL continues to drop remind me of what my grandad called “Whistling when passing a cemetery” Lots of ranting about Apple has first call for parts, etc does not mean a thing. Many investors think AAPL is overrated and have for some time. I have been adding AAPL each month this year. Was doing very well, was up overall nearly 25%. now up just over 7%. So I ain’t happy, but I am still up. My guess, and it is just a guess, is we will see sub $300 before it turns. But bragging about how Apple has beat the supply system when in fact Apple uses the “just in time” system that is about to hurt it big time soon. Just hang on and buy more at $300. Buying now is like buying a house now, both have not bottomed yet. Just my view, I am no expert but I have made good money on AAPL over time.

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