Apple drops to 11-month low on old reports of component cuts

“Apple Inc. (AAPL) declined to the lowest price in almost a year after the Nikkei newswire reported that the company curbed iPhone production on weak demand,” Amy Thomson and Karl Baker report for Bloomberg.

“The stock fell 2.7 percent to $506.35 at 11:14 a.m. in New York, and earlier touched $498.51 for the lowest intraday level since Feb. 16,” Thomson and Baker report. “Through Jan. 11, the stock had lost 26 percent from a record high in September.”

Thomson and Baker report, “‘Order cuts appear to be old news,’ Milunovich wrote in a research report today. He said he reduced his iPhone sales estimates in December after checks with suppliers indicated a reduction in the number of phones being made.”

“‘The iPhone is no longer unique, fashion fatigue will transpire and the rich price premium will be impossible to sustain,’ Per Lindberg, an analyst at ABG Sundal Collier in London, wrote in a research report today.”

MacDailyNews Take: You know, just like Coach handbags and BMWs, the no-name “analyst” continued.

Thomson and Baker report, “The iPhone may be facing supply chain constraints as Apple shortens its product cycle to introduce new models more frequently, Walter Piecyk, an analyst at BTIG LLC, said in an interview. ‘It takes a manufacturer time to do it efficiently,’ he said. ‘An iPhone sold in the March quarter is more profitable than an iPhone sold in the December quarter.'”

Read more in the full article here.

Related articles:
The strange math of Apple’s alleged massive iPhone 5 component cuts – January 14, 2013
UBS analysts: Apple iPhone component order reduction ‘old news’ – January 14, 2013
Apple pulls down U.S. futures – January 14, 2013
Apple shares drop below $500 after reported cuts in iPhone 5 parts orders – January 14, 2013

15 Comments

  1. there is no stickiness to the fragmented “android platform” like there is to the apple ecosystem. 95% of apple iPhone users plan to purchase an iPhone as their next phone. This is not true for Android users who, in significant numbers, indicate that they will switch away from Android.

    1. The inexpensive Android phones out there are LOCKED to Frodo 2.2.1 – those phones are not upgradable – and a lot of software doesn’t run on it. So why are people buying at all? Because they haven’t a clue and they don’t have the money.

      Compare one Samsung Galaxy Mini to say a Samsung Apollo – both running 2.2.1 and you will notice fragmentation yet again in the devices of the same year Both Frodo and the PREINSTALLED apps are running differently still. Nothing is consistent in Android on similar devices. Samsung should be ashamed.

      This type of business practice of obsolete crap shall be harmful to Samsung and Android in the next few years as consumers realize their purchases are dead-end devices.

      Happy Apple choose to remain faithful to the consumers.
      Apps of the past run smoothly. IOS has been a smooth and blessed upgrade to every device. Very few of the latest apps will not work on older models.

  2. Correct version of the title: “Apple drops to 11-month low on old and FALSE reports of component cuts”.

    Component orders are only measured on YoY basis, because otherwise it makes no sense for seasonally sold goods. So this “order cuts” “news” is not only old, but also, in essence false. iPhone orders surely up YoY for March quarter.

  3. Given how dishonest we know the banking industry to be, i am beginning to wonder whether there is a conspiracy to drive the stock down in order to make a huge profit when it bounces back again. I wish i had some funds to buy shares!

    1. I look for a good bounce about Thursday as people in the know try to front run the expiration of all those $500 calls on Friday. If you bought $500 LEAPs last year in January of 2012 you probably paid about $20 per share for them and at $550 you were $30 per share to the good on them. Even at $530 you were doing OK at $10 per share profit. This bogus news article just killed them for you and now you are out the original $20. This highway robbery is why I stopped doing AAPL options.

    2. Basically Option investing in AAPL is like the Casino. Another investment strategy that Wallstreet is destroying the faith of common investors. Better to own tangible shares that you can ride out then be left with nothing.

    3. Sold all my calls at $700. It was fantastic! Picked up a few calls today at $500. Have been doing other things with some of that AAPL profit (from $700). I have done very well on FB recently. Sold some FB options today before the “big announcement” tomorrow. Who knows what that will be? PCLN has treated me well. Very well. I have made much more money in PCLN in the last year than I have in AAPL. And I’ve done very well in AAPL. Never put all your eggs in one basket. I have had good results in some non-tech stocks also. And consider puts at the appropriate times. You make as much money going down as you do going up. I certainly did with puts in AAPLfrom the high $600 range down. Why not? I made money as AAPL was going up! Diversify. Don’t be greedy. Learn when to take money off the table for a while. That would have been late September for me. That would have been AAPL.

  4. Apple plans to move fast with sharps igzo screens implemented into both the

    all new iPhone 5S and

    a all new ultra-simple smart phone
    less expensive Siri Driven app lacking phone.

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