real-time news and commentary for investors
Wednesday, Oct 16
WSJ and Reuters: Apple cutting 5C orders
- The WSJ and Reuters report Apple (AAPL +0.5%) has cut its Q4 iPhone 5C production orders for contract manufacturers Hon Hai (Foxconn) and Pegatron. Hon Hai's orders are reportedly getting cut by a third, and Pegatron's by less than 20%.
- The WSJ adds a component supplier has been notified of a 50% cut in 5C component orders.
- The reports follow one from a Chinese site indicating daily 5C production has been cut in half, and activation and survey data indicating the 5S is soundly outselling the 5C, whose higher-than-expected unsubsidized prices drew criticism from the start.
- Investors seem to be taking the news in stride on account of past reports. AAPL +0.6% premarket, following equity futures higher.
- Possibly helping: Canaccord's Mike Walkley has raised its PT to $580 from $560. Walkley's global survey work points to "a significantly higher sell-through mix of iPhone 5s versus 5c that should benefit near-term ASPs and margins, and he also expects a mix shift towards the regular iPad relative to the Mini, following pending refreshes.