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Apple (AAPL) is taking it on the chin again this morning as chatter about weak iPhone 5 demand...

  • Friday, December 14, 2012, 8:00 AM ET
    Apple (AAPL) is taking it on the chin again this morning as chatter about weak iPhone 5 demand in China, and UBS taking its price target on the stock down to $700 from $780 has the shares off 2.2% premarket.
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This news story has 54 comments:

  •  
    Given Apples high percentage of S&P 500 earnings growth this year and its market cap being 20% of the NASDAQ wonder who's going to pick u slack going forward if Apple falters?
    14 Dec 2012, 08:17 AM Reply Like
  •  
    According to this article the lines are long:

    http://engt.co/SW7oIL
    14 Dec 2012, 09:35 AM Reply Like
  •  
    Now rocback.. you wouldn't want any truths about apple getting out would you? After all negative news it just so much more entertaining.
    14 Dec 2012, 12:59 PM Reply Like
  •  
    The lines will always be long. They were long too during the iPhone 4/4s launch, and yet Apple's no 7 in China's Smartphone market this year. I've just been back from a trip to Beijing and Shanghai, and the chatter was not very positive among the people hanging out in the Genius Bars. One thing that pissed people off was the price difference between China and Hong Kong in addition to the very small incremental improvement in the latest iPhone.

    Apple's thinking that it's equal to Hermes, LV, etc in China, and can afford to charge like those guys. Big mistake. It's a luxury indeed, but fashion items are the time tested and accepted way to show off in China, not phones.
    14 Dec 2012, 09:35 PM Reply Like
  •  
    Samsung and Lenova, one and two in China
    Lenova is growing quickly, also in PCs
    14 Dec 2012, 08:18 AM Reply Like
  •  
    Who is this Lenova that you speak of?
    14 Dec 2012, 08:29 AM Reply Like
  •  
    Lenovo Group Ltd Adr
    http://bit.ly/TSAKGK

    Thursday, December 6, 6:50 PM Baidu (BIDU) is partnering with Lenovo, now China's #2 smartphone vendor (per IDC), to offer the LePhone A586, a $158 device running on Baidu's Android-based OS. The A586 sports a 4.5" display and dual-core Qualcomm Snapdragon processor, and supports Baidu's cloud services. It's the kind of product Baidu needs to see more of as it works to improve its mobile search share and ad sales, and is also the kind that has fueled Android's Chinese share gains - the 16GB iPhone 5 sells for over 4x as much unlocked.
    14 Dec 2012, 03:10 PM Reply Like
  •  
    Somebody bought a huge block at 517. The futures popped 3 points in one click
    14 Dec 2012, 08:39 AM Reply Like
  •  
    Anybody ever look at that fact that apple is the only computer company that is still growing year over year? does anybody see that the iPhone is still the best if not the largest ? We went thru this with mac vs windows, it's still better to be the best vs. being the biggest!
    14 Dec 2012, 08:40 AM Reply Like
  •  
    Is it growing because of the computers it sells? Or is it growing because of the iPhone and the iPad?

    I think I recall them saying Mac sales were increasing yoy but I don't remember....

    What does Apple look like without the iPhone and without the iPad.
    14 Dec 2012, 09:16 AM Reply Like
  •  
    I used to be a fan of Apple in the 80's and 90's (I still have the original Mac SE with 7" B&W display) for its technological superiority (the 10% needed that). Unfortunately at that time, they lost to MS by trying to keep a tight grip on the hardware (and then flip flopped) and going for a big price premium. This time, of course, they went for the other 90% (as Mitt Romney put it) i____ crowd who will keep on buying at a big premium based on the color, simplicity etc.(As an Engg. Prof. I liken all the app. icons sitting on the screen to the McDonald workers sales screens because they can't read much and need the pictures - Great Clips wants you to have their app. to make an appointment! A simple web link and web browser is not enough?) and worked for a while. But it looks like we will see a repeat of that niche role except this time market lost to Android phones. I don't like that either because I already see what Google is doing in their search engine: "Push those paid customers on the top even though they really don't have what you are looking for"
    14 Dec 2012, 09:20 AM Reply Like
  •  
    All this is kind of irrelevant at least for some time. I think that the real drag on AAPL is the big investors rebalancing and diversifying away their portfolios. Let's say that AAPL was 5% of your portfolio when the price was $350 not so long ago. Then AAPL doubles while your entire portfolio grows only modeslty, let's say 10%. At this point AAPL is almost 10% of your portfolio and you have not bought a single new share. Diversification is still the mantra of portfolio management and you need to bring the AAPL share back to 5%. You start selling. I think that this is what is happening now and until the rebalancing process is over, fundamentals will not really matter.
    14 Dec 2012, 10:51 AM Reply Like
  •  
    Not a very useful question. What do the Miami Heat look like without Lebron James and Wade?

    What does Microsoft look like without Windows?
    14 Dec 2012, 03:50 PM Reply Like
  •  
    They do not wait for China release of products if they are already available in other countries. The reason there are no lines for iPhone 5 and iPad mini is because those who are willing to wait in line for the devices already have one.
    14 Dec 2012, 08:43 AM Reply Like
  •  
    No it's because to avoid more riots all the phones required preorder reservations.

    For which there's a very easy answer....
    14 Dec 2012, 03:50 PM Reply Like
  •  
    APPL needs to show that it cares for its investors. Thats great that hey are so insulated w/billions of dollars that they can laugh this off over cocktails. But some of us have more than we can lose in here based on our love and belief in the products, the service and the wisdom at the top.

    I've been hanging long here but in case no one has noticed we have broken support and it would be really nice to hear APPL raise guidance or do something other than let us all twist in the wind while they play their cards close to the vest. You know the retail investor should matter to them. Like the fans should matter to a band. And they should issue some statement to renew our faith.
    14 Dec 2012, 08:44 AM Reply Like
  •  
    Apple needs to break its "silent treatment". Fact is the media and Hedgies KNOW this, as does shady Samsung who pays media to constantly smear Apple, and they have a FIELD day just misconstruing data and information to look biasedly slanted against Apple.

    ONE MENTION by Apple Mgmt that China sales are going as planned and that would STABILIZE THE STOCK.
    14 Dec 2012, 09:21 AM Reply Like
  •  
    ...Why is it that the AAPL crowd gets so furious at Samsung, all the patent issues are related to AAPL or another company buying patents of smaller companies then suing each other look at the lawsuits won yesterday against AAPL by a patent trolling company, this is how they all do business behind the scenes, AAPL is not a saint here but a leader in this practice. Additionally the rage over Samsung slinging mud in their Ads at APPL, why? Wasn't it AAPL who had the long running Ad of the nerd who was MSFT and the cool guy who was AAPL, come on this again was a practice not only used by AAPL but initiated by them. So you AAPL cult folks need to step out and look at the forest through the trees...if you are over concentrated in AAPL (like any other company) you should be very careful in this heavily manipulated market for the big boys are using this too move the entire QQQ, due to its size and eyeball grabbing nature. Things don't go up constantly, this one howver will stem as the holiday numbers will be stellar, in the long run a more sideways moving stock may be the norm until Mr. Cook shows he can not only lead his company but an entire industry...there was only one Jobs. as a disclosure I am short near term puts, for this company still prints its own money with 125B in cash and rising...
    14 Dec 2012, 09:45 AM Reply Like
  •  
    Who cares? I don't want Apple to manage expectations or massage earnings. Let the traders suffer. Apple doesn't owe them anything, and I plan on holding for years at least.
    14 Dec 2012, 12:29 PM Reply Like
  •  
    If you look at the story, it is actually incredibly BULLISH. They are producing 15 millions 5s a month, with plans still INTACT to ramp up to 20 if they are CUTTING orders down and still meeting that level, this implies that demand is at least 20 mil a month. And as to the Chinese story, they instituted a policy to cut down on lines.
    14 Dec 2012, 01:44 PM Reply Like
  •  
    The retail investor has made a good profit for the year 2012. The retail investor should not need to be coddled by numbers if those numbers aren't going to add anything to the story....which by the way is, Apple stock is doing great for the year so don't be a day trader and Apple should make you a few bucks.
    14 Dec 2012, 02:34 PM Reply Like
  •  
    4 handle coming for AAPL, then 3 handle. The fundamentals gave investors a great return, but the unsustainable grow rate has slowed.
    14 Dec 2012, 08:47 AM Reply Like
  •  
    LOL. In your dreams!!!
    14 Dec 2012, 08:53 AM Reply Like
  •  
    So you're short Apple I take it?
    14 Dec 2012, 09:10 AM Reply Like
  •  
    I think $450 is the buy zone again ??
    14 Dec 2012, 08:49 AM Reply Like
  •  
    Ill buy when the analyst with a 1000 usd price target downgrades them to a sell ,that will be the bottom as he was bullish at the top
    14 Dec 2012, 08:57 AM Reply Like
  •  
    lol so many people said apple would hit 1000 by the end of the year, I'm still laughing at them.
    14 Dec 2012, 09:17 AM Reply Like
  •  
    I said it a long time ago that Apple's lawsuit against Samsung was going to change the perception of Apple in a negative way in Asian countries. Not only that, the problems at Foxconn in China adds to the negative perception of Apple in that country.
    14 Dec 2012, 09:07 AM Reply Like
  •  
    We all have our own stories. Several years ago,I had 400 shares of Apple. I entered a new position and put a stop loss about 1% below the current price. I think it was around $240 or so. I thought I saw a head and shoulder pattern develop. Anyway, I got stopped out of my entire position. I had the stop loss at the EXACT low price. Well, the rest is history. I've been back in for a while. I'm about even, where we are right now.
    My point......Apple is a great company, but this is really frustrating.
    14 Dec 2012, 09:19 AM Reply Like
  •  
    Fasten your seatbelts. Apple might test $500 today. Options expiration. Look for big volume and big volatility. The troops are massing at the front.
    14 Dec 2012, 09:19 AM Reply Like
  •  
    And I think $350 is the buy zone
    14 Dec 2012, 09:22 AM Reply Like
  •  
    "Chatter"?

    That's how ridiculous this is all starting to become. People making investment decisions because some "no name blogger" posts something on a web site? If so, they deserve what they get. Come on... The iPhone 5 just went on sale in China TODAY! Even the news post that is posted with the new item above states that "the new device will probably sell strongly". All of that is conveniently ignored. Also ignored is that maybe the reason there were no lines in front of the store was fact that Apple started a reservation system in China meant to eliminate the lines & avoid the riots they had for the iPhon4s release. Once China Mobile signs on to sell iPhone the sales numbers should be unbelievable.

    Show me VALIDATED and COMFIRMED sales numbers! Then, if the Apple Bears are right, I will gladly admit defeat. Until then, this is all rubbish.
    14 Dec 2012, 09:30 AM Reply Like
  •  
    Plus and this is the huge idiocy: to avoid riots there was a reservation required to pick up a phone!

    I say go for a cage-match situation and let the blood flow! I wonder what the analysts would winge about then? Mesh on the cages too large?
    14 Dec 2012, 03:53 PM Reply Like
  •  
    Chatter is based on false reports. That seems to be very popular now. Two weeks ago similar negative rumor that Apple suppliers had decreasing orders. A week later verified report that Apple suppliers had an increase of some 20% in orders. Aaple is the stock many love to hate. Partly, It is their own fault because they operate in such a secrete manner, which Wall Street hates.
    14 Dec 2012, 09:32 AM Reply Like
  •  
    @lorvic- actually aapl is one of the most transparent companies that exist. They are one of the only mobile device sellers that even provide actual product sale units. Not amzn, goog, Samsung, etc.

    Investors get frustrated that management doesn't publicly issue statements to support the stock, but this isn't their job or their responsibility. They are in charge of meeting the targets they set every quarter - knowing if they meet their goals the fundamentals of company will correct the mis-pricing of shares.

    Patience is tough sometimes, but understanding how aapl can be manipulated in the short-term has become a necessity for shareholders. I have yet to see any material news or data to suggest the upcoming quarterly results will under deliver. There will be a significant run-up like always prior to the January report.
    14 Dec 2012, 01:46 PM Reply Like
  •  
    iPhone 5 launches in mainland China and Taiwan today, lines show up as usual Mobile
    By Richard Lai posted Dec 14th, 2012 at 2:27 AM 115


    While the iPhone 5's been out for some time already, it wasn't until today that our friends in China and Taiwan (along with many other countries) can finally buy the device locally. Since midnight local time, several carriers and shops welcomed customers with balloons, drinks and even musical performance. But in the case of Apple Stores in China, the lines were much shorter than before as interested buyers have to first make an online reservation, before trekking to the stores once they are notified -- a policy no doubt welcomed by residents of bitterly cold Beijing at this time of the year. On top of that, both China Unicom and China Telecom are simultaneously offering the iPhone 5 -- with WCDMA or CDMA radio, respectively -- alongside several tariff options. In China, the unsubsidized iPhone 5 starts from ¥5,288 or about $850.

    Our brethren in Taipei went to check out the various shops today and saw warm reception for the iPhone 5 launch as well, with Chunghwa Telecom getting the most attention, followed by local resellers Studio A and Data Express. Including tax, the Taiwanese iPhone 5 starts from NT$21,900 or about $750 unsubsidized. More pics after the break.


    Studio A's line for iPhone 5 in Taipei.


    Data Express in Taipei.


    China Unicom's Shenzhen launch for the iPhone 5.


    Sina Tech's photo of the iPhone 5 launch at the Beijing Wangfujing Apple Store this morning.

    http://engt.co/SW7oIL
    14 Dec 2012, 09:37 AM Reply Like
  •  
    Yay! Got 50 more at 509! Oh what a Happy Holiday Season this is turning out to be! :-)
    14 Dec 2012, 09:42 AM Reply Like
  •  
    I love this - the 4S release was greeted with riots and chaos, so Apple puts a system in place to prevent riots and chaos. The system works, and the stock price tanks because there were no riots or chaos.

    Good news for me as I picked up some more AAPL at the open, but my God, people can be idiots sometimes.
    14 Dec 2012, 09:48 AM Reply Like
  •  
    The "riots and chaos", long lines, overnight camping, is part of the fanboy/girl "exclusivity" mystique, so Apple has to allow and even encourage it, but of course in China things get out of hand. You really don't want people killing each other for a stupid overpriced phone.
    14 Dec 2012, 01:06 PM Reply Like
  •  
    $500 / share here we come!
    14 Dec 2012, 09:55 AM Reply Like
  •  
    Still a great company, still making great products, still selling like wildfire, stores still full of paying customers. The maps fiasco will eventually be fixed - Google maps is a free app and fixes the problem short term. (And Google isn't getting dinged for the 'low' margins on free software.) Go figure.
    14 Dec 2012, 10:04 AM Reply Like
  •  
    Exactly. Google was up yesterday basically because they released a "free" app. Google is a terrific long-term buy, but frankly, I've never seen anything as completely stupid as how AAPL has traded over the last three months. No wonder retail investors are afraid to come back into stocks. Maybe AAPL was over-bought at $700? But a 25-30% decline in a stock with a P/E of about 14, $120 billion in cash on hand and still growing 20+% year-over-year??? All anyone can do is shake their heads and wait for the January reporting period. Then we'll know.
    14 Dec 2012, 10:49 AM Reply Like
  •  
    Oh is that the reason Google was up yesterday? Silly me, I thought it was because people were buying the stock.
    14 Dec 2012, 10:57 AM Reply Like
  •  
    Deep insight there man. Keep up the good work.
    14 Dec 2012, 10:35 PM Reply Like
  •  
    Tech led by Apple has led the last almost 4 year long bull rally. If Apple falters whose going to pick up the slack? China has 300 million mobile subscribers A number projected to double in a year. Hard to imagine Apple not getting its share.
    14 Dec 2012, 10:46 AM Reply Like
  •  
    "Jefferies analyst Peter Misek trimmed his iPhone shipment estimates for the Jan-March quarter, saying that the technology company had started cutting orders to suppliers to balance excess inventory."

    I'd like to know if Misek has a short poisition in AAPL.
    14 Dec 2012, 11:10 AM Reply Like
  •  
    Support for AAPL is at $505 until that support is broken then it could fall to the mid $400's. Blah, Blah , Blah. I sold my 400 shares at $545 several weeks ago after buying in the 40's in 2004. This stock will not see 600 anytime soon. I'll get back in when all of this senseless daily BS stops of how many people in line at some store in China.
    14 Dec 2012, 12:22 PM Reply Like
  •  
    i dunno about you guys, from a technical perspective, i see that the 200 MA > 50 MA > 20 MA > Price... I do also see a Head & Shoulders formation with a $520 neckline as support? it's now broken and if it can't break above...it's not going to be a good sign?
    14 Dec 2012, 12:23 PM Reply Like
  •  
    The right shoulder still hasn't formed yet. Once the stock gets back in the 620-640 range, the head and shoulders formation will be complete.
    14 Dec 2012, 02:03 PM Reply Like
  •  
    I was a fan of Peter Lynch in the 1980's.he always said look at the stores in the mall. The ones that are crowded are companies you should be interested in. I was at the Mall the other day and the Apple store was so crowded that they had a line to get in. IPads,Mimi's and 5's were flying out the door. This is a company that now has alot of haters and they are determined to drag the stock price down. They make the highest quality products that rarely fail. They have no debt and their operating system s superb. I've seen the other phones. They are not the same quality as Apple.
    I even saw an Article on the new IMac saying it's too thin. I saw it and used it the other day. Elegant and superb with a great screen
    This is the measure of success. Every rival hates you and they are determined to bring you down. I am personally appalled that everything is speculation and no real facts are out there as far as Apples 4 th quarter goes. I have very little faith in analysts but obviously the market does because it lets these people constantly speculate and get rewarded for it. One last thing. Nobody ever talks about all Apple products working with each other. They are way ahead of everybody else and get punished for it.
    14 Dec 2012, 12:29 PM Reply Like
  •  
    Apple's stuck in a negative feedback loop. It's easy to pull a stock down w/ almost any kind of negativity when it lacks positive offsetting catalysts. There won't be a strong positive catalyst until January earnings. Whatever happens in the near term (before January earnings) is noise. The earnings figure to be somewhere in the vicinity of $16 per share. This is a good time to just stop listening to all the negativity and load up on dips. The technical swoon that Apple is currently is in actually works to the advantage of fundamental longer term investors.
    14 Dec 2012, 12:41 PM Reply Like
  •  
    not a fan of aapl products but the stock is great for trades... Solid company so when it falls it`s just a good buy because fundamentals are great.

    $520 is a support after that anything can happen.
    14 Dec 2012, 12:44 PM Reply Like
  •  
    It might fall below 500 as early as next week!

    Apple is even too arrogant to care about its current investors at this critical conjuncture especially with BB10 getting released in almost a month.
    14 Dec 2012, 04:14 PM Reply Like
  •  
    http://seekingalpha.co...

    just go there.
    14 Dec 2012, 09:57 PM Reply Like
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