“J.P. Morgan’s Rod Hall, who has an Overweight rating on Apple (AAPL) shares, this morning weighs in on the somewhat vague report yesterday by DigiTimes about a decline in the company’s orders of chips in Q2,” Tiernan Ray reports for Barron’s.
“Hall is dismissive of the DigiTimes article,” Ray reports. “As he writes, ‘We would take the Digitimes article with a very large grain of salt given the almost perfectly random nature of their prediction track record (our opinion of course)… Given slowing iPhone growth this year we do expect Y/Y unit growth to be lower than in prior years though we suspect that the SE’s lower price point could surprise on the upside through the Summer.'”
Read more in the full article here.
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