“For most of 2017, Apple stock moved steadily higher. However, the iPhone maker stumbled in the last week of the year, due to several reports suggesting that demand for the new iPhone X isn’t living up to expectations,” Adam Levine-Weinberg writes for The Motley Fool. “The doom-and-gloom claims that captured a lot of media attention last week are almost certainly inaccurate.”
“Last Monday, Taiwan’s Economic Daily News spoiled Apple shareholders’ Christmas by reporting that the company had cut its iPhone X sales forecast for the upcoming quarter by a stunning 40%. The new forecast is 30 million, down from 50 million, according to the report. At least two other Asia-based analysts also reduced their iPhone X shipment estimates recently,” Levine-Weinberg writes. “Other analysts have cast doubt on these bearish reports. The week before Christmas, prominent analyst Katy Huberty of Morgan Stanley named Apple her top pick for 2018, based on rising demand for the iPhone X in China. Meanwhile, Jun Zhang of Rosenblatt Securities stated that the Taiwanese media reports may have erroneously referred to the iPhone X, and that the cuts actually related to the cheaper iPhone 8 and iPhone 8 Plus models.”
“The most widely covered report — the one stating that Apple had cut its iPhone X sales forecast from 50 million to 30 million — is particularly suspicious. To be quite blunt, the idea that Apple might sell 50 million iPhone X units next quarter is highly implausible,” Levine-Weinberg writes. “This in turn suggests that the sources for this report aren’t reliable.”
Read more in the full article here.
MacDailyNews Take: AAPL shorts: “Apple has cut iPhone X production by eleventy gajillion units!!!”
Anyone who sells their stock base on a single poorly-sources report from Economic Daily News, shouldn’t be playing the stock market.
Profit from the painfully gullible. — MacDailyNews, December 26, 2017
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[ly] 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 stock tumbles on one poorly-sourced report of low iPhone X demand – December 26, 2017
Apple and suppliers shares drop on report of weak iPhone X demand – December 26, 2017