“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
We don’t need no stinkin sources.
It is almost 4pm. AAPL down -2.67% to 170.33 …… Does anybody want to wager on what AAPL will do in after hours trading? It is like clockwork. As soon as the trading day closes then UP goes AAPL into the green. It happens EVERY time a FUD story raises its ugly head.
If Apple stock sells off over unsubstantiated rumors, there must be plenty of investors who think “no confirmed sources” is the truth. I’m not sure what type of investors are that stupid but it seems as though there are plenty of them around who believe anything negative they read. Apple’s P/E isn’t that high and the company will soon have a mountain of repatriated reserve cash, so what makes the friggin’ stock stay so much more volatile than other major tech stocks?
Apple is seen by WallSt as a one pillar (iPhone) company. The vast majority of Apple’s efforts is focused on and dependent on a single product line. Accordingly if anything is seen to shake that pillar it moves the stock.
Apple cannot fail. Apple can only be failed.
a sales person at my local Apple Store admitted they are not selling very many, Combine low sales with high return rate = big mess for Apple
what an incredible source you have there, I have a bridge in the desert for sale at bargain, according to an Apple genius I spoke with 🤪
Devastating! Time to sell everything!!!
I call BS on this. In my experience Apple store employees are really really reticent about discussing even their training. I once asked one about their compensation and he got really nervous and gave me a stock answer about being well taken care of by Apple. No fricken’ way one would say the iPhone X isn’t selling well. Like someone else said here, nice troll.
I suspect you’re a paid troll. One day I’d like to see people like you, and the people who pay you prosecuted for fraud and market manipulation. There’s enough crap info out there by reason of sheer incompetence, certainly don’t need more from paid trolls like you.
If there is a problem with iPhone X demand, it’s not due to the price—it’s just more people choosing the iPhone 8 Plus, the unheralded juggernaut of the iPhone lineup.
biased opinion or fact?
regurgitation of a small nothing article – R2 “hey how about I write something so i can sound smart too”!
This seems to be typical of stock prices. They tentatively creep up then quickly retreat on the slightest bit of bad news.
Almost. The great hordes of people (not investors) that own equities don’t know squat about their holdings, or why they bought them in the first place. Ergo, the slightest bit of negative news and the run for the hills.
While the unwashed were selling I added to my 475 APR $195/$200 Call Spreads @ $1.00 with 60 APR $180/$185 Call Spreads @ $1.20 (with another order @ $1.00 that has so far gone unfilled).
Assuming AAPL Closes above $200 on April expiry I profit $212,000. My April price target is unchanged at $210.
Just curious. How do you estimate future prices? Do you look at fundamentals or charts?
I picked up an IPhone X, cause my upgrade was av available, just thought I’d give it a shot….without sounding like a complete shill, I love it.. great form factor, tired of oversized phones. Great screen, for a phone it’s all wanted and more.
The shills are those that claim to have bought an iPhone X and didn’t like it, preferring instead an iPhone 7.
“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”
Tim Cook should be fired because he doesn’t know as much as Ming Chi Kuo or today’s bozo: Sinolink Securities Co.’s Zhang Bin (who’s he?).
Why is it that no FANG stocks are ever pissed on by reports like Apple is? Is it possible that all the FANG stocks don’t have any weaknesses worth reporting. Even Microsoft seems to be just breezing along perfectly, no problems. But Apple, forget it. Every other week is considered doomsday for Apple. It seems as though Apple opening more stores is a waste of time if no one is buying their products. Does it even make any sense at all to open more stores if their main product can’t produce extra sales.
Butt hurt apple fan boys are funny will believe anything, yes apple is slowing down your phone
“Butt hurt”, “fan boys”… thanks for your insightful contributions to the discussion.
By the way, you may want to learn how to write English at least SOMEWHAT close to correctly.
Where is the usual articles after Christmas saying Apple sold so many phones the activation server went down Hint they didn’t sell that many.
It’s possible some of those Apple Data Centers opened this year actually handled a good part of the order demand this time. Or it could be as you say they didn’t sell as many units. Too many variables that change to make any assumptions.
Only worry about total iPhone sales and buy on every dip…and there are many…that’s why we look at charts. If Buffet sells, then worry.