Merrill Lynch: Sell off on iPhone ‘noise’ overdone; supply chain moves are inventory adjustments, not demand issue

“Merrill Lynch‘s Scott Craig today waded into the debate over Apple‘s (AAPL) iPhone outlook following several estimate notes [Monday] from others on the Street both cutting estimates and defending the stock,” Tiernan Ray reports for Barron’s.

“Apple shares today are up $11.32, or 2.2%, at $530.15,” Ray reports. “Craig, reiterating a Buy rating on on the stock, and a $720 price target, writes that the ‘recent selloff on supply chain concerns’ is ‘overdone.'”

Ray reports, “Reports of cuts in component orders for the iPhone 5 are ‘inventory adjustment and not a sharp drop in end-demand,’ he argues.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Ellis D.” for the heads up.]

Related article:
Jim Cramer rips Citi analysts over Apple – December 19, 2012
Yeah, uh, about those so-called iPhone supply chain cuts: Never mind – December 18, 2012


  1. What’s sad is if the story actually did cause any Apple shareholder losses why do investors believe every unsubstantiated story about Apple? Apple is bombarded with these types of stories on a daily basis, while a stock like Amazon is almost never the object of these types of articles. We almost never hear of Amazon’s supply chain problems although I’m sure they do exist.

    I still think it’s mainly capital gains taxation causing Apple’s losses, but what do I know for certain.

    1. That’ll be because Amazon are merely a distributor of goods manufactured by thousands of other companies; they’re only the middle-man, so ‘supply-chain’ issues are irrelevant.

  2. “Cutting and defending”. One as bad as the other. Neither serves investors best interests which is to make money through investing. There is no such thing as a safe long term investment unless you are investing in government backed devices. Equity investing requires occasional profit-taking to take advantage of fluctuation of the stock price. When an investment, like AAPL, runs up tremendously it is prudent to harvest your profit. And since September 21, everyone has realized this basic of investing. Those who have ignored the fundamental approach to investing have played with fire and their fingers are burned badly. Buy and hold. As dangerous and careless as day trading. When you do not manage your investment wisely, whether by careless speculation or by holding forever, you are being foolish with your money. Profit. You don’t count it until you take it. Remember this the next time you’re up a bunch and you know you should take your gains and diversify. Do better if AAPL sees $650 or $700 again. It can’t stay there forever.

  3. And what happened ?? Every slime-bag trader/quant/agent/floor broker too ‘profits’ another $8from each share because they could and leave the retail investor swinging in thecind – again.. Slime..

Reader Feedback

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