“Investment firm RBC Capital Markets slashed its price target for Apple stock to $140 this week, saying data from the company’s extensive supply chain suggests iPhone sales could shrink in 2016,” Neil Hughes reports for AppleInsider.
“Analyst Amit Daryanani lowered estimates on AAPL for both its March and June quarters, reflecting supply chain signals, as well as his own concerns over tough comparisons during the first six months of calendar 2016,” Hughes reports. “According to Daryanani, a ‘host of supply chain data points’ indicate that Apple’s iPhone lineup is set to face difficult headwinds in March. He estimates that Apple will ship 54 million iPhones in the March quarter, which is well below Wall Street expectations of 60-million-plus units.”
“Investors and analysts have been spooked in recent days, after a number of key Apple suppliers cut estimates,” Hughes reports. “Specifically, Daryanani cited poor outlooks from Avago Technologies, Dialog Semiconductor, Analog Devices, and Jabil Circuit.”
Read more in the full article here.
MacDailyNews Take: Echo chamber. “Actionable notes” morphing into “conventional wisdom.”
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
Clear-eyed Apple investors can see the forest for the trees.
Piper Jaffray: Individual component suppliers are not indicative of the health of Apple’s overall iPhone business – December 16, 2015
Apple stock slumps on Dialog Semi warning – December 15, 2015