According to Bloomberg News, under the misleading, fomenting headline “Apple Ditches iPhone Production Increase After Demand Falters,” Apple had supposedly “upgraded its sales projections in the weeks leading up to the iPhone 14 release and some of its suppliers had started making preparations for a 7% boost in orders.”
Proof of that? A citation? Bloomberg News offers none. Who’s the source (and just how short were they)?
So today’s big “news” — which is old and, laughably, just the same as Bloomberg “News” already reported in May — is that Apple will reportedly build some 90 million units for the second half of this year, which is in line with iPhone 13 production over the same period last year.
As has been widely-reported, the company is adjusting the production mix more toward higher-priced iPhone 14 Pro models which are seeing stronger demand due to significantly increased differentiation from lower-priced, non-Pro iPhone 14 models.
Debby Wu and Takashi Mochizuki for Bloomberg News:
Apple Inc. is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize, according to people familiar with the matter.
The Cupertino, California-based electronics maker has told suppliers to pull back from efforts to increase assembly of the iPhone 14 product family by as many as 6 million units in the second half of this year, said the people, asking not to be named as the plans are not public. Instead, the company will aim to produce 90 million handsets for the period, roughly the same level as the prior year and in line with Apple’s original forecast this summer, the people said.
Demand for higher-priced iPhone 14 Pro models is stronger than for the entry-level versions, according to some of the people. In at least one case, an Apple supplier is shifting production capacity from lower-priced iPhones to premium models, they added.
Apple shares fell about 3% in pre-market trading in New York on Wednesday. US stock-index futures were also lower.
MacDailyNews Take: This is a non-story out of Bloomberg “News” (so, of course, know-nothing investors panic). Use it and the dip it drives to make money.
Citing “people familiar with its projections,” the very same fomenting Bloomberg News bovine excrement artisans reported in May of this year — via the same Debby Wu, no less — that Apple is planning to keep iPhone production roughly flat in 2022, asking suppliers to assemble roughly 220 million iPhones, about the same as last year.
In other words, the “news” today is exactly what the same “news” outfit reported in May with the added topping that has been widely reported for weeks (see multiple articles below), that demand for Apple’s premium iPhone 14 Pro and iPhone 14 Pro Max is so strong as to cause Apple to shift production from lower-priced to high-priced iPhones. QUELLE HORREUR!
The Bloomberg “News” article is FUD*. As will be all other articles that use it as the basis for their anti-Apple reports. Use it to your advantage.
Apple is going to make and sell roughly the same amount of iPhones as last year, but more of those will be higher-priced “Pro” models. Last year, Apple set an all-time revenue record of $123.9 billion for the holiday quarter. With a stronger mix creating a higher iPhone ASP and iPhones making up some 50% of Apple’s total revenue, the company is quite likely to set a new all-time revenue record this holiday quarter, as well.
See also: Daniel Ives dismisses Bloomberg ‘News’ FUD, reiterates $220 Apple price target
The Bloomberg “News” piece, and we do mean piece, above is classic: good news buried under old news disguised as bad news via a misleading headline.
Of course, our ever-flawless crystal ball predicted this quite clearly:
Apple iPhone mix is easily going to be the strongest ever. Do not be surprised with the reports that Apple has “cut iPhone 14 orders,” meaning iPhone 14 and iPhone 14 Plus. The company will likely be increasing iPhone 14 Pro and iPhone 14 Pro Max orders to reflect the strong mix which bodes very well, of course for Apple’s iPhone average selling price (ASP). – MacDailyNews, September 14, 2022
Read the all “news” with a critical eye. Watch how widely this non-news piece of FUD is regurgitated throughout the media (already here’s Reuters with their “Apple falls on fears of slowing iPhone 14 demand” trash recap) and used to drive Apple stock price lower. Extrapolate to all types of “news.”
(1/6)
Rumored Apple ditching iPhone production increase sounds a little bit weird to me. As I surveyed before, Apple had production switch plans from iPhone 14/14 Plus to iPhone 14 Pro/14 Pro Max/price-cut 13, but I didn't hear of any overall iPhone production increase plan.— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) September 28, 2022
See also:
• Apple’s focus on elevating, differentiating iPhone Pro models is paying off – September 27, 2022
• Apple’s iPhone 14 ASP trending ‘ahead of iPhone 13’ – analyst – September 27, 2022
• Apple needs to significantly increase iPhone 14 Pro production to have enough for Christmas – analyst – September 20, 2022
• Ming-Chi Kuo: Apple is upping production of iPhone 14 Pro models due to strong demand – September 19, 2022
• iPhone 14 pre-order demand is ‘robust,’ tracking ahead of expectations – Wedbush – September 12, 2022
*FUD – Fear, Uncertainty, and Doubt.
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MDN is dead-on-balls, as always.
Remember, these are the same doofuses who have yet to retract their utterly bogus “The Big Hack” story.
Since childhood, I have always been fascinated by how society has lying and deception built into every transaction. When you go to the store, and a big sign says, “SALE” it legally means “we’re selling it”, but we are taught that “sale” means “discount” (which is not true) . . . For Wall Street, “Buy, Sell, Hold” are distorted words, and CNBC is just a mouthpiece to move uneducated consumers into buying and selling in a way that is beneficial to the institutional investors who are creating the narrative.
Age 2 = “Santa Claus is real” . . . Age 8 – “Sorry, we made up all that Sh*t about Santa Claus” . . . but you can trust us. We’re your parents.
MDN regularly posts politically motivated articles of Fed rate changes, inflationary pressures (which for any objective observer are global, not driven by the POTUS), and cherry picked economic stats that it (wrongly) thinks track directly to US election cycles … then they act like Apple should not be part of the macroeconomy and should smoothly rise in value at multiple times the general market forever and ever, no matter what. Could you please come back to the world of reality?
A rational consumer and investor realizes that for the most part Apple sells high-cost luxury goods. Regardless what you claim, relatively few of them have broad market appeal. MDN notably pans all of Apple’s add-on services and subscriptions, indicating that the last decade of Apple’s new business ventures are not appealing to the formerly enthusiastic Apple consumer. Also after all these years, Apple doesn’t try to directly serve businesses in medical, scientific, education, manufacturing markets which are stable & lower margin. It is a universal truth that luxury manufacturers enjoy wonderfully thick profit margins when consumers have excess cash to spend, but they take it on the chin when fiscal downturns happen. And every decade or less, markets do swing, regardless of what political leader you selected, or who the current Apple CEO is.
While Apple can count on large annual hardware sales from people replacing damaged iPhones and lost headphones, most people are not interested in buying the latest iPhone every single year with more cameras and unperceptably faster processors. When prices (GLOBALLY) rise for energy, food, housing, healthcare, and education …. then inevitably most wise consumers will put off buying luxury electronics. Smart shoppers will choose cheaper models instead of the latest iPhone 14. The reality distortion field is long gone, and the stock price of AAPL will not outpace the market by leaps and bounds in times of budget tightening.
Nevertheless today again MDN chooses to attack analysts that bring you the news you don’t want to hear EVEN THOUGH Apple stock is basically following the macro market trends that you yourself report (and politicize ad nauseum). MDN complains that influential analysts/banks/media are trying to manipulate AAPL in order to profit … which seems odd because if you know what’s going on, YOU could profit from the opportunity too, instead of whining about how the market works (and has always worked).
To me, this style of reporting indicates MDN is not trying to present objective news nor to be a credible analyst. Anybody can be an unhelpful critic. If you don’t think AAPL should ever decline, then you aren’t living in the real world.
“not driven by the POTUS”
False. Biden Puppet’s war on fossil fuels drives inflation.
“then they act like Apple should not be part of the macroeconomy and should smoothly rise in value at multiple times the general market forever and ever, no matter what”
False: MDN routinely cheers for dips to go a bit lower so they can “back up the truck.”
“Apple sells high-cost luxury goods. Regardless what you claim, relatively few of them have broad market appeal”
False: Apple holds over 80% revenue share of the premium smartphone market and has some 1.4 billion devices in active use.
“MDN notably pans all of Apple’s add-on services and subscriptions”
False. Blatantly so.
“Also after all these years, Apple doesn’t try to directly serve businesses”
False: https://www.apple.com/business/essentials/
“It is a universal truth that luxury manufacturers enjoy wonderfully thick profit margins when consumers have excess cash to spend, but they take it on the chin when fiscal downturns happen.”
False: Demographics. Apple’s customers are the least affected by recession.
“MDN chooses to attack analysts that bring you the news you don’t want to hear ”
True on the attack, false on the reason: Because it is not news at all, as MDN explains above and at the link below.
“MDN complains that influential analysts/banks/media are trying to manipulate AAPL in order to profit … which seems odd because if you know what’s going on, YOU could profit from the opportunity too”
If by the word “YOU,” you are referring to MDN, how do you know MDN is not profiting by using their knowledge of spotting plainly obvious market manipulation? Are MDN “complaining?” No. That is your incorrect interpretation. By publishing their Takes, MDN are informing those who due to inexperience or, like you, being a simpleton, might be inclined take “the news” or even just the headline at face value.
“To me, this style of reporting indicates MDN is not trying to present objective news nor to be a credible analyst.”
Well, that’s because you’re a fool. What MDN provides above and at the link below is valuable analysis that explains why this story exists and what it is meant to accomplish.
You are so moronic and uniformly wrong as to be painful.
I suspect you will ignore the points made in my comment, since you will be able to comprehend them.
Your first statement is blatantly false and the rest of your cherry picked opinions don’t help readers as much as you pretend. If you think you’ll get rich by AAPL zooming to $220 because your favorite analyst says so, yippee for you. Go ahead and ignore the Fed and macroeconomic trends. The consensus opinion on Wall St points to Apple trending closer to the rest of the market, which Steve is absolutely correct in pointing out your obsession with politicization.
Your personal attack on Steve is tasteless.
Wow, Steve88 is about as insightful and accurate as the inbred cousins of AppleCynic and AppleBS.
Steve88 couldn’t be more wrong if he tried. What a monumental loser.