Apple falls for third day as so-called ‘iPhone woes’ trim $40 billion in value

“Apple Inc. fell for a third straight day amid concern that demand is waning for the iPhone, its bestselling product, shaving about $40 billion from the company’s market capitalization so far this year,” Selina Wang reports for Bloomberg.

“Shares of the world’s most valuable company fell below $100 for the first time since October 2014,” Wang reports. “They were trading at $98.20 at 9:34 a.m. in New York Thursday. The stock has lost more than 4 percent so far in 2016 after declining 4.6 percent in 2015.”

“Concern was fanned again this week after Japan’s Nikkei Asian Review reported that the U.S. company would reduce the output of its latest iPhones by about 30 percent in the first quarter, a number that surprised many analysts,” Wang reports. “Apple predicted in October that it would have another record holiday quarter.”

Read more in the full article here.

MacDailyNews Take: The charade continues.

Let’s repeat that history lesson, since history repeats:

• Apple manipulated by Wall Street Journal before earnings? – January 22, 2013
Japan’s Nikkei, The Wall Street Journal blow it, get iPhone demand story all wrong – January 16, 2013
Did Apple reduce 4-inch Retina display orders due to improving yields? – January 15, 2013
Analysts: iPhone 5 demand ‘robust;’ ignore the non-news noise – January 15, 2013
Apple iPhone suppliers decline on report orders cut by 50% – January 15, 2013
Apple swoon erases $17 billion from stock market – January 14, 2013
Apple iPhone 5 production cut signaling a new product release? – January 14, 2013
Apple drops to 11-month low on old reports of component cuts – January 14, 2013
The strange math of Apple’s alleged massive iPhone 5 component cuts – January 14, 2013
UBS analysts: Apple iPhone component order reduction ‘old news’ – January 14, 2013
Apple pulls down U.S. futures – January 14, 2013
Apple shares drop below $500 after reported cuts in iPhone 5 parts orders – January 14, 2013

SEE ALSO:
Apple stock price tumbles 3% in premarket, now trades well below $100 – January 7, 2016
Apple stock slumps near $100 amid ‘iPhone sales worries’ – January 6, 2016
Wall Street’s freak out over declining iPhone sales is overblown – January 6, 2016
Piper Jaffray: Apple’s iPhone production cut do not necessarily presage sales decline – January 6, 2016
Foxconn plans ‘rare’ holiday as iPhone output fears rattle investors – January 6, 2016
Apple to release Q116 earnings, webcast live conference call on January 26th – January 5, 2016

22 Comments

  1. So let us apply the same question to Google.

    Are they having any Android phone woes?
    How are sales going on those nice shiny new Android phones?

    What does Google have coming out in the near future to help star off those dwindling sales?

    1. I wasn’t aware Google was back in manufacturing phones since they sold off their Motorola arm. Since Google makes no money from the OS itself and manufacture/sales of Nexus devices are by other OEMs I suspect any woes don’t materialize financially for Google regarding Android phone sales.

  2. iPhones are the least of Apple’s worries.

    Global economic strife, war in Middle East, Russian disruption, Chinese economic collapse.

    And more to come. Apple stock is just a reflection of the economy that it lives in. It is NOT the economy.

  3. I find it odd that “analysts” fail to consider that the companies reporting slow downs have customers other than Apple that may be cutting orders. Foxconn also produces product for Amazon and others, for example. Yes, Apple is a large customer, but my guess is not over 50% of the revenue of most. No one has specifically said who is cutting what.

    1. Apple’s share price has been crashing for nearly an entire year with the P/E compressing. Most of the other tech stocks had been soaring in 2015 with their P/Es greatly expanding. Now Apple is again crashing harder than most profitable tech stocks. That’s the big difference I noticed.

  4. Again, Apple needs to file a complaint with the Securities and Exchange Commission about these lying so-called “experts”. Apple has never under performed. They have many records for phone and mobile computer sales. The stock is purposely suppressed. They need start suing people too.

    1. I totally agree about filing a complaint. I can’t believe analysts have that much advance information about Apple. How is it that Amazon is able to keep its sales numbers hidden and Apple can’t? As far as I’m concerned most of what the analysts are coming up with is pure speculation. There’s no way all those suppliers are leaking information about Apple component cutbacks. These analysts also claim to know how much iPhone inventory is not being sold. It’s just seems impossible they have so much information on Apple but not other companies.

  5. Actually, not bad at all. Maybe this will spark a shareholder revolt to rid the company of Tim Cook. What’s happening is NOT market manipulation or some kind of buying opportunity, it is a loud and clear statement from Wall Street that the company has a weak leader they do not respect and do not believe he can do anything about why, regardless of what else is going on in the market, the company’s shares are trading at a third of their true value.

    1. @Jay Morrison: We heard you loud and clear for years now. So Wall Street perceived a company through a CEO, but not how he runs the company strong and great business it is. What does Wall Street want?. Want its own man running Apple?.
      Do you have anyone in mind to be the next CEO?. Don’t tell us you are the next Apple’s CEO.

  6. The simplest explanation for the current kerfuffle is that for once, AAPL made enough phones to fill all the demand for the various holidays.

    What happens in a normal year is the “analysts” pull a number out of their individual asses and make this the “must beat” number on iPhone sales. AAPL tries to make as many as they can, but fall short of this number and note in the conference call they could have sold more if they had them. And they get punished for having people standing in line with cash in their hands.

    And now they are getting punished for having (very temporarily) too much or just the right amount of inventory. The Foxconn failure to offer triple overtime has much more to do with them having hired 100,000 additional assemblers in the past year and a half than AAPL cut orders.

    The worst will be when they predict numbers for the NEXT quarter. Ordinarily, several million phones didn’t make into the Xmas quarter because of supply constraints. So AAPL will guide “low” and be punished further.

    The ridiculous aspect here is that in either scenario, Apple sells the same (increased and record) number of phones. And they get punished either way. It’s always the same tired “law of large numbers”, “Apple could produce a dud”, “Apple is too dependent on one product” refrains. The last one is particularly annoying – Whirlpool makes appliances, they are not going to open up a new market anytime soon, face much worse competition than Apple and they have a P/E of 16.

    There are ZERO signs anywhere that demand for iPhones is down. ZERO. Supply chain does not indicate anything as none of us are privy to inventory numbers or future model plans. There is ABUNDANT evidence that demand is strong and continues to be strong. The switch rate from Android is net positive and strong; Samsung has publicly announced they are struggling and the upgrade rate on their offerings is far far below that of Apple’s.

    To top it off, has any company EVER made and sold 78 million high-tech, high-quality, high-price, high-margin devices in a quarter and sold them? Nobody has ever come close, not nobody, not no how. What other company makes $1 billion net each week right now? Those pooh-poohing Tim Cook’s performance are just as bad as the Wall St manipulators who shun AAPL and cheer on and reward AMZN, a company that has made less profit in its entire history than AAPL will make this week.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.