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Apple (AAPL) has cut iPhone 5 component orders for calendar Q1 due to weaker-than-expected...
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Sunday, January 13, 9:38 PM ETApple (AAPL) has cut iPhone 5 component orders for calendar Q1 due to weaker-than-expected demand, sources tell the WSJ; display orders are said to be cut by ~50%. The Nikkei also claims display orders have been halved, albeit from an elevated level of 65M. The articles back up analyst reports of iPhone production and component order cuts, and raise the question of whether Apple needs a cheaper iPhone and/or one with a larger display to bolster its international share. Suppliers on watch: LPL, CRUS, OVTI, QCOM, BRCM, SWKS, TQNT, AVGO.
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This news story has 94 comments:
For Apple, any good news isn't good enough (in fact it's taken as bad news) and any bad news - no matter what the questionable source is - is taken as if it has been craved in stone by the hand of god. As I've said in the past, this stock is being manipulated and anyone who doesn't believe that should have their head examined.
http://seekingalpha.co...
Agree. on QCOM comment.
Segment still growing, regardless of AAPL share.
For every 1 apple bull that's left there's the hedgies protecting their covered calls, after-the-fact Ashrafs, and the CNBC shills lapping up the negative rumors and chanting the Apple is dead fanboy song every day junk like this gets released.
Dummy.
Isn't that 0.20 % what I see on Marketplace.com quote from after hours of 1/11 at 7:59 pm ?? I think it'll change tonight at 4am EST, unfortunately.
Check with cab driver next time... They might have a early clue.
On the other hand, if all cab drivers talked about AAPL, that is the time to get out...
I wasn't aware trading went on after 8p Friday (article seemed to hit Sun evening)-- or do you just put in an order for Mon morning?
There's obviously something going on: either this is a fake, or Apple is switching suppliers/parts.
There are many reasons Apple doesn't buy out suppliers..... The reason most likely is that the iphone 5S coming in the second quarter using a different supply to warrant a 50% reduction in supply orders
Just saying.
I guess Foxconn was pretty silly for telling its workers they will have to work through their New Year holiday assembling iPhones... I wonder what they will be doing instead.
No one reported these hard numbers. You can find the blurb at Digitimes.
I think they ordered enough parts for 65 million iPhone 5's last quarter and probably sold 45 million, which combined with 4’s and 4s's is a nice 55-60 million total. Now they have parts for 20 million and reduced the 65 million this quarter to 32 million. Still enough parts to make another 45 million 5's with parts left over.
Also, can anyone show me a single analyst predicting 65 million iPhone 5s for next Q?? AAPL (who we know always is very conservative) clearly ensured that their suppliers could produce so they could sell everything possible...
Do they want to be the next Motorola?
I doubt it very seriously.
OF COURSE they need a bigger phone but they're too
busy with idiotic lawsuits over bogus patents to deal with it.
Bingo! We have a winner!
Better check that data again:
http://bit.ly/UY44h3
In 2011 alone, Samsung sold over 300MM phones worldwide:
http://bit.ly/10tjekL
busy with idiotic lawsuits over bogus patents to deal with it."
You're right, if all the lawyers are tied up in court they will never have the time to design the new phone. Why does Apple have lawyers designing their phones in the first place? Now you have me worried. They should hire design people to work on their product line and leave the lawyers to lawyering. Maybe I will email them and suggest this.
Lawyers and lawsuits occupy top management time and attention. It shows.
AAPL and iPhone are good but AAPL to $1000 is another pump and dump by Wall Street crooks.
Caveat Emptor
i am not touching aapl until after the earning report and wait and see what they project.
I now believe the report is true and i am not 100% sure the reason why they cut their order by 50%.
Since I have knowledge on how hi tech business works and you do not just cut your order to your suppliers by 50% without reason and also usually there are financial penalties. Just think what if you are the supplier and your order is cut in such a short notice by 50%. There cannot be any good results from this.
Now even regurtitating old Oct news headlines. For the first Oct-Dec of iP5 sales AAPL ordered 65m units, way ahead of all estimates of sales so they could meet demand (positive for a solid earnings beat which expect 47m units), reducing that to 35m units for the lower sales volume of the Q1 2013 period. If Apple have a good Q4 and 50m units are sold, that leaves them with 15m surplus to add onto the new production volume giving them stock of 50m for the lower volumed Q1 2013. This is normal product management. In fact Apple have a good 10m units spare which is sensible and will stop all the "Apple Can Not Fulfil Orders Rumour Mill"
Long investors please remember it is in the interest of many hedge funds to keep the price low for another week. There is clearly no sensible reason for the share price to trade on such low multiples. It is the same reason why FB is at at PE of 260, and Amazon at 70. AAPL will sky rocket during the next two weeks. Apples earning estimates are so low and with all the advance facts on iPhone sales (7m alone in it's opening weekends in the US & China), stores being out of stock when 65m were made, plus new mac products, plus record App Store sales, plus initial iPad mini order bring increased from 8m to 12m units and being out of stock everywhere, plus new 4th gen iPad opening sales of 3m). It is clear there will be a huge earnings beat.
In addition there is a whole raft of positive stock catalysts that can be announced during the year - China Mobile that could increase apples phone sales by 40-50% in a year, new low prices iPhone that could increase phone sales by 200%, iTV that could add $50bn in the first year, plus do not forget Apples $130bn of cash, plus $1bn of new cash every week that can buy, innovate, and reward investors. Remember also the tablet market and smartphone market is set to more than double in the next 4 years.
The Apple plan has taxied onto the runway, and the engines are thrusting up. Use this period (the next week) to buy AAPL in the $520 - $530 range, before the stock takes off.
http://bit.ly/UYayN3
If those cuts are true, have all of you have thought that can be due because simply seasonality between Q1 and and Q2? That Production Plants were at max cap during last Q1 to catch strong iphone 5 demand and now they just adjusting production levels to their best view about traditional lower demand in Q2?
I read that article in full few hours ago and 50% was NOT mentioned at all. Cited % cuts were in the order of 20-30%.
I hope the moderator publish my comment this time!
AT&T sold 10 million phones in the most recent quarter. 8.2 million of them were iPhones.
How many were the Galaxy S3?
And MSFT would rise 5%!
Will be yet another buy point for me though. If I get any longer AAPL I'll have to buy a bigger portfolio.
For the first Oct-Dec of iP5 sales AAPL ordered 65m units, way ahead of all estimates of sales so they could meet demand (positive for a solid earnings beat which expect 47m units), reducing that to 35m units for the lower sales volume of the Q1 2013 period. If Apple have a good Q4 and 50m units are sold, that leaves them with 15m surplus to add onto the new production volume giving them stock of 50m for the lower volumed Q1 2013. This is normal product management. In fact Apple have a good 10m units spare which is sensible and will stop all the "Apple Can Not Fulfil Orders Rumour Mill"
This is a case of the 'tail wagging the fog'. Remember iPhone 4 and 4s sales are still strong also. I see nothing to suggest the figures are other than bullish for Apple.
Come on CNBC... "Rise Above".