Apple closes above $400, falls sharply on growth concerns

“Apple (AAPL) shares fell below $400 for the first time since December 2011, but closed above that level on the back of weaker-than-expected-results from one of its suppliers, Cirrus Logic (CRUS),” Chris Ciaccia reports for TheStreet. “Apple shares reached levels not seen since January 2012.”

“Cirrus Logic, which provides chips for Apple’s products, missed estimates when it reported preliminary results Tuesday night. The company said revenue for the fourth quarter grew 87% to $206.9 million. That was below analysts’ estimates of $210.2 million,” Ciaccia reports. “There were also reports that demand for the iPad mini was slowing drastically, as Apple gets ready to update its popular tablet.”

Ciaccia reports, “DigiTimes, which is often spotty with Apple rumors, cited sources in Apple’s supply chain, saying they were seeing a 20% to 30% decline in shipments for the iPad mini… Shares of Apple fell as low as $399.58, before finishing at $402.59, down 5.55% on the session.”

Read more in the full article here.

MacDailyNews Take: When did a lone data point (which was explicitly attributed to “a decreased forecast for a high volume product as the customer migrates to one of Cirrus Logic’s newer components”) and/or a rumor from DigiTimes become actionable? The bears are running out of FUD prior to Apple’s April 23rd Q213 earnings report.

I know there has been lots of rumors about order cuts and so forth and so let me just take a moment to make a comment on these. I don’t want to comment on any particular rumor because I would spend my life doing that but I would suggest it’s good to question the accuracy of any kind of rumor about build plans and also stress that even if a particular data point were factual it would be impossible to accurately interpret the data point as to what it meant for our overall business because the supply chain is very complex and we obviously have multiple sources for things, yields might vary, supply performance can vary. The beginning inventory positions can vary, I mean there is just an inordinate long list of things that would make any single data point not a great proxy for what’s going on.Apple CEO Tim Cook, Q113 conference call with analysts, January 23, 2013

Related articles:
The bull case for Apple; AAPL not as ‘doomed’ as some may think – April 17, 2013
Apple nightmare scenario finally priced in; a great set-up for April 23rd earnings report – April 17, 2013
iPad mini shipments expected to drop 20-30% in Q213 as consumers wait for next-gen model, sources say – April 17, 2013
Apple stock price swoons after Cirrus Logic warns – April 17, 2013

20 Comments

  1. WHAT wrong with Apple is it grows too fast and too big . It should have grown slowly and maybe unprofitably like amazon to give the mother fuxker a space to imagine WOW How big AAPL will be ….

    1. Yes they are. It is audio chips designed by Cirrus Logic so they are the only supplier and Apple only use chips from Cirrus because they by far got the best performance and sound quality. And Apple represent like 80% of their business. How ever. They noted that they had an inventory build because a major costumer was waiting for some new “chip” to put in their latest product. That’s why they missed. I don’t think it’s a big deal, they will rebound and so will Apple with new demand.

  2. I believe Steve jobs said he stored up the money coz he know the greed of the market motherbfuxkers .

    Maybe Tim has a plan . Maybe Steve jobs taught him what to do when those mother fuxkers attacks .

  3. One supplier of one minor component part falls 2% short of analysts’ expectations because of changeover to a newer component, and 5% of Apple’s enterprise vale is erased?

    Buy, buy, buy.

  4. Almost all of the trading stocks had their yearly April 15th tax day sell off. For AAPL, I thought it would be only 1 or 2 percent at the most. 5.5% is just stupid and Tim Cook and the board could have controlled this and kept AAPL at of above $420. “Be patient” is getting very old now Tim!

    1. Apple does not control AAPL stocks. Never have and never will.

      In fact the only ones who control any stocks are the stock owners.

      WTF, were you just born yesterday?

  5. Correct me if I’m wrong but, the article says Cirrus Logic GREW by 87%. If Apple is selling 87% more iPhones and iPads that would be one hell of a jump towards the positive for this quarter.

    1. No no no. The analysts factored all of that in, you see, and the company missed exceeding their calculations so it’s doom doom DOOM!

      (Besides: how many clicks would be generated if the headline didnt mention Apple?)

  6. As someone who works as a trader, apple is definitely not fully priced in. You can find more info about trading on my blog, but generally speaking apple is in a downtrend–there has been no buying commitment. Since thats true, why would you want to buy it? Let a stock prove to you its worth owning if you want to own it. Apple has severely underperformed the indices this year. As a trader i can say that, once a trend starts it can continue for far longer then anyone thinks. So in the meanwhile, steer clear. Next stop $360.

  7. There is one thing I don’t understand. Ciaccia is saying that the “demand” for the iPad mini is slowing. In the other paragraph DigiTimes says that the shipments are down. I think Ciaccia is confusing end dans with shipments. Sure there is always a drop in sales when we are waiting for a new product but Apple is also decreasing production of it. Naturally. So the demand is probably not down 30% but the sell in to the channel is.

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