“Shares of Apple have returned to their downward trajectory after a couple up days, falling $4.30, or almost 4%, to $115.42, the main focus this morning being the surprise devaluation by China of its currency, as my colleague Shuli Ren reported,” Tiernan Ray reports for Barron’s. “That won’t help iPhone sales in Apple’s most promising market, presumably, as it raises the effective price of the iPhone, goes the thinking on Wall Street.”
Ray reports, “At the center of it are varying reports of production cuts in iPhone, but the interpretation of the data is conflicting.
“On the one hand, Jefferies & Co.’s Sundeep Bajikar, who reiterates a Hold rating, cuts his price target to a $130 from $135, warning of ‘macro demand uncertainty for iPhone primarily in China.’ Bajikar’s main concern is that Apple is cutting production orders with suppliers for iPhone assembly while it gauges the effect on demand in China,” Ray reports. “With a slightly different take on things today are Bluefin Research Partners analysts John Donovan and Steve Mullane, who write that actually what is going on is a delay in production while Apple shifts suppliers to making the next model, presumably the iPhone ‘6S,’ cutting short builds of the existing iPhone 6”
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MacDailyNews Take: Analysts who keep trying to analyze Apple using single data points are doomed to failure.