Analysts are confused about Apple’s iPhone X supply and demand

“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:

• Zip;
• Zero;
• Zilch; and
• Nada

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


  1. If you read ‘Thinking fast and slow’ (Nobel prize winner for Economics, despite being a Trikcyclist), you will find that out of five world-wide top investors, who played the market for a year (virtually), his hidden (sixth) team beat all of them hands down. The sixth team? Chiumanzees… Nuf said!

  2. Apple stock is again looking like that heavy turd that sinks to the bottom of the toilet while the FANG stocks and most tech stocks, in general, are soaring like protein-fed eagles. All that reserve cash Apple will soon have in hand is useless to support Apple’s share price. Volatility for Apple stock is about the same as Apple having no reserve cash.

    I’m not saying any of this is serious. I’m only pointing out how weak Apple stock is and any unconfirmed rumor can send this stock reeling. I thought that with Warren Buffett holding so much Apple stock, it might also make a difference and give confidence to other investors. No such luck. Apparently, Kuo has more power over Apple than Tim Cook does and I’d say there’s definitely a problem with this.

    I’ll still be getting my dividends even if the stock drops further so I won’t be suffering any immediate harm. It’s just a shame Apple has such a poor reputation and seems to be the one stock that always has to fade before earnings, so even an earnings beat only lifts it back to where it was before the doom and gloom stories took over. Apple is such an easy target for the news media to frighten Apple investors. Every quarter becomes an Apple shareholder worry-fest. Nothing ever changes for how Apple is viewed by Wall Street. At least not for the better.

  3. intellectual laziness
    + lack of analytic skills
    + herd mentality
    + disregard for readers
    + publishing deadlines
    + low journalistic standards

    = useless mess of speculation

  4. The correct spelling is Anal-cysts ..not analysts.

    Why dont investors understand… these bunch of low lives are not in this game to help you.. they are in it for their own agenda and their firm’s.

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