Apple lower after Credit Suisse notes substantial supply-chain cuts

“Apple is trading lower in pre-open action (-2%) after Credit Suisse noted substantial supply-chain cuts in Asia,” StreetInsider reports.

“The Credit Suisse Asia Technology Team has noted that iPhone supply chain orders have weakened recently,” StreetInsider reports. “Apple has lowered its component orders by as much as 10% according to the research.”

StreetInsider reports, “‘In our view, the continued weak supply chain news could weigh on Apple shares for the next few weeks/quarters,’ analyst Kulbinder Garcha said.”

Read more in the full article here.

MacDailyNews Take: In your view, Kulbinder? You can’t see the forest for the trees. Why not try listening to what the CEO tells you instead?

Those who are interested in actually analyzing companies vs. fomenting low-information investor sentiment against them, are those who listen to what Apple’s management tells them:

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, January 23, 2013

Analysts who keep trying to analyze Apple using single data points are doomed to failure.

17 Comments

  1. Tim Cook has stated repeatedly do not underestimate their supply chain management. They use many vendors for many different things.

    If you look at the record of this “supposed” analyst you will see that 14 days ago he rated Apple a buy, and has a success rate of 58%.

    Also realize that for the holiday quarter Apple did place huge massive massive orders for parts etc. etc. for the iPhone 6, Apple TV and other Apple products. It is natural that without order this large that perhaps the January quarter will not require as much parts inventory to continue the ever-expanding iPhone product sales throughout the world especially in China and India.

    Apple will take a nice dip at the open if not throughout the day and that will present a nice swing trade opportunity for those of us so inclined. Bet against Apple and you do so at your own peril!

    ANOTHER analyst to be ignored!

    1. This guy has an accuracy rate of 50% +/- yet the market responds aggressively to his comments. Something is wrong here! If we had an SEC that was working for the benefit of a strong and stable economic system then they would document this analysts/company’s comments, document the resultant stock price flux, identify the winners and any relationship they have with the analyst/company, and prosecute any market manipulation as fraud.

      Unfortunately, it sure looks like we have an SEC that turns a blind eye to these analysts and their apparent manipulation of stock prices, and to the health and stability of our economic system in the process.

  2. Nevertheless, Apple, while having the strongest year ever, will leave AAPL on one of the lowest gain in decade.

    Tell me this is not technical manipulations. WS is Fu**ed up! Anal-yst are getting creative showing their inabilities to analyse the market correctly. These guys should be sued for misinformation…

  3. Don’t we get this story every year about now?

    Apple orders components to allow peak production of new model iPhones in the run up to Christmas. In a very few weeks, the assembly lines will be pulled back a little from maximum possible production to a sustainable but still very high level of production. In anticipation of that, Apple reduces component orders correspondingly so that they have exactly the right quantity of parts.

    Every year an analyst hears about the orders being reduced and shouts that the sky is falling and Apple is doomed.

  4. Recycled news/rumors! News with no supplier names have to be ignored. Just anal shit from Wall Street bathroom manipulating. Reliable news always repeat ALWAYS have names and company names, not just stating supply chains.

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