“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
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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