“Nearly three months after the iPhone X went on sale, analysts are still debating supply and demand, though the tone has changed,” Emily Bary writes for MarketWatch.
“Initially, the big question was whether Apple Inc. would be able to produce iPhone X devices quickly enough to meet demand for the phone, which was expected to drive a ‘supercycle’ of upgrades,” Bary writes. “Now, however, analysts are wondering whether Apple might be easing up on build orders for the phone given that interest hasn’t quite manifested as anticipated, and whether this even matters for the stock.”
“On Wednesday alone, four analysts revealed their views on rumblings from the Apple supply chain. Another chimed in Thursday,” Bary writes. “They diverged on many points, including how useful supply-chain data points are, whether demand is indeed weak, and whether Apple shares will be negatively affected in the months to come.”
Read more in the full article here.
MacDailyNews Take: The following qualifications are required in order to be a financial analyst:
• Zilch; and
So, why do brokerage firms employ analysts? Because brokerage firms make their money on commissions and fees. In other words, the act of charging investors to buy/sell securities. Analysts recommend buying or selling based on scant evidence, misreading evidence, wild guesses, and/or coin flips. Some even – GASP! – lie.
The few good analysts actually listen, realize they never have all of the information, and actually use some math to try to make accurate calls based on the paltry information they do have at their disposal. Most analysts exist to create churn – buying and selling – in order to generate commissions and fees for the brokerage houses that employ them. The “business news” outlets treat their pronouncements and “concerns” with much seriousness and deep consideration, as required by every decent charade that involves a monetary exchange.
Most of the “Apple analysts” in the world couldn’t analyze their way out of a wet paper bag, much less accurately predict iPhone supply and demand.
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
Cramer: Ignore reports about Apple iPhone concerns from people who ‘don’t know anything’ – January 18, 2018
Apple stock slips as no-name analyst claims ‘lukewarm’ iPhone X demand – January 17, 2018
Reports of Apple cutting iPhone X orders make no sense – January 2, 2018
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