Apple shares weighed down by production slowdown rumors

“Apple Inc. has seen its shares weighed down this week on reports of production cuts on its popular iPhone and iPad devices, possibly due to component shortages arising from the floods in Thailand,” Dan Gallagher reports for MarketWatch.

“Apple (AAPL) shares have come down more than 4% this week,” Gallagher reports. “That represents a slight underperformance to the broader Nasdaq, which despite volatile swings during the week stemming from the debt crisis in Europe, appears on pace to close the week with a decline of less than 1%.”

Gallagher reports, “For Apple, much of the issue has been a swirl of market reports out of Asia indicating a slowdown in production on its iPhone and iPad lines… Not everyone believes there is a production slowdown. Gene Munster of Piper Jaffray wrote a report on Wednesday that, ‘We believe recent chatter around iPhone 4S production cuts is off base,’ adding that he remained comfortable with his target of 26 million units sold for the December quarter.”

Read more in the full article here.

17 Comments

  1. Since Apple is transitioning to the iPhone 4S without ending production of 4’s and 3GS’s, it is possible that component suppliers for the 4’s and 3GSs’s are experiencing order reductions from Apple while Apple’s TOTAL component orders (for all three phones) are actually up.

    For the rumors to have meaning we would need a consolidated report listing all (or at least) most components suppliers rather than anecdotal quotes that don’t add up to the total.

  2. Here’s what I don’t get: AMZN’s PE is about 115; AAPL’s is about 14. Is AMZN’s growth rate really 8x that of AAPL??? I know the market is illogical, but damn!

    1. I don’t get it either. I was always taught that a lower PE is better if you are looking for a higher return on investment. Using your example, It costs 115 dollars for every dollar in earnings from Amazon but only 14 dollars for every dollar from Apple. Is that right?

    2. exactly right Mark.
      the market makes little sense in general.

      but when it comes to Apple the anal-ysts & other idiots never get it! they exaggerate or have a death wish for apple.

      maybe their so-called professional journalism is being bribed by competitors who spread fud.

      enough already!

      it’s unbelievable how sick humans are.
      apple-like efficiency, love & loyalty, is grander than any country’s false patriotism. apple-like efficiency could be part of our economic salvation. on the one side we hail apple, on the other we love when it crashes just because competition is supposed to be good – that’s neurotic. just like religion. we’re too blind, too dumbified, numbified by media & gov.

      enough already.

      let the good companies keep doing good. why break a beautiful thing?!

      so it’s not just anal-ysts who can join the doctors, lawyers on that rank, but fans & naysayers too. sick race.

      now let’s return to logic please:
      no one works harder than apple.
      14 vs 115 PE?!

      1. False patriotism? Economic salvation? Religion? Step back and take a deep breath. We all love our Apple stuff but hey, it’s just a company. What? Analysts gang up on AAPL? Why? Analysts don’t give a good shit about AAPL or any other company they cover because that’s not their job. That’s why they’re called analysts. Sometimes they’re wrong. Sometimes they’re right. But they don’t have a “thing” for AAPL. Ok Skippy? Now, calm down and try interacting with human beings. Go out and have a beer. Get laid. Better yet Skippy, do both. It’s just a big old company Skippy, they don’t know you exist so don’t fret about them. They’ll be just fine. And the stock will probably drop a little more even if those bad old analysts don’t tell you that.

  3. I’m sure the numbers were way up for the initial stockpile for introduction and now that that is over then of course you cut production but the production is probably way more than previous years – I mean how else could you sell millions of phones in one weekend unless you had huge build up.

    These analyst are idiots

  4. Or maybe it’s the market in general?

    From your header:
    Nov 11, 2011 – 02:54 PM EST — AAPL: 383.76 (-1.46, -0.38%) | NASDAQ: 2679.32 (+54.17, +2.06%)

    AAPL is doing the NASDAQ. Some would say that’s winning.

  5. Ever since MDN’s grade-A hissy fit following the iPhone 4S release and (as it turned out) brief Apple stock drop, during which they explicitly blamed Apple for their failure to control the out-of-control Apple rumors (as if such a thing were possible), I continue to be amused by MDN’s behavior, as they continue to repeat unsubstantiated Apple rumors which help drive down the price of Apple’s stock.

    If you don’t like the effect, perhaps you shouldn’t be part of the cause, eh?

  6. AAPL stock falls due to production slowdown “rumors”.
    exactly.
    rumors!!

    so, why is it that only AAPL seems to be so damn affected by rumors, whilst all the other schmuck-ass firms keep their shares?!

    as for anal-systs: how can they be so stupid to take rumors as fact!? the aapl stock affects many buyers and many employees. anal-ysts’ irresponsible views based on shit bring on suffering for many. let’s turn it around and see how anal-ysts would feel like assholes if their income or livelihood were affected with their own medicine! m.f.!!

    as for the public, why are we so silly to trust anal-ysts?! why do we give in? are we that numbed by gov, media, experts, that we can not think for ourselves?!

    the secret to life is to have your own independent opinion. like apple says: think different. not anal.

    let’s fire all the anal-ysts, journalists, bureaucrats.
    hail iAnarchy. humanity is basically decent, crime would not go up. trust humanity not greed.

  7. Well, there could be motivation or bias behind the Apple bashing (again) or it could be ignorance. It would be great if what they said made some logical sense. It doesn’t.

    • Floods will only hurt Apple suppliers

    • iPads only eat away at Mac sale so that Mac sales were only 8 times that of the world wide market sales in stead of 10 times that market. (No Windows PCs were eaten this time.)

    • iPhone 4S sales are drying up and they sell out of stock between 10 minutes and 4 hours everywhere after they are offered for sale. If you want one now weeks into the release in the USA, you have to order them at exactly 9°clock the evening. If it is 9:01 pm, is to late. Try again the next night. (If you really need one, there are gray markets for iPhone 4S all around the world to pick one up for only 2 or 4 times the listed price.)

    • The talking heads are using the Apple products and devices on TV (and at home) while they are telling us, the future is all down hill from here for Apple. WE CAN SEE THEM ON YOUR DESK AND IN YOUR HANDS IDIOTS!!!

    • Only “40% of all photos on Twitter now come from Apple iOS devices”. Only “40%”. Why not 110%. Or 200%. (Math means nothing to these people)

    • Macs are set to be only 25% of the worlds largest personal PC market in China. Only 25%.

    • iPhones suck out almost all the profits in the world’s smart phone market.

    • etc.

    Man, think about what you say talking heads before you say it. If you want to just look ignorant and not motivated against something, THINK FIRST.

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