“A day after Christmas, shares of Apple Inc. are taking a tumble, down more than 2% in midday trading Tuesday,” Bret Kenwell writes for TheStreet. “The culprit? A news report suggesting demand for the iPhone X is weaker than many investors would have hoped for. The Economic Daily News, a newspaper in Taiwan, says Apple is trimming its fiscal first-quarter iPhone X guidance to 30 million units from 50 million units. That’s according to “unidentified supply chain officials.””
“For starters, this report comes amid thin trading around the Christmas holiday. Not that that discredits the information, but its timing is questionable,” Kenwell writes. “Second, how many times have we seen these overseas sources telling us misleading information on Apple’s iPhone shipments? Too many to count and most just seem to be intra-quarter noise.”
Kenwell asks, “We really going to trim off nearly 3% of Apple’s roughly $900 billion market cap — a swing of approximately $25 billion! — over a report from an outlet most investors have never heard of citing ‘unidentified supply chain officials?'”
Read more in the full article here.
MacDailyNews Take: Why, yes, we are.
Profit from the painfully gullible.
As we wrote this morning, “Post Christmas AAPL sale!”
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… 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
Apple and suppliers shares drop on report of weak iPhone X demand – December 26, 2017