Apple suppliers lower amid 5C pricing disappointment


Apple suppliers Cirrus Logic (CRUS -4.7%), Qualcomm (QCOM -3.6%), Broadcom (BRCM -1.9%), Nam Tai (NTE -1%), Avago (AVGO -1.6%), and (in spite of an upgrade) Skyworks (SWKS -2%) are joining Apple itself in heading south as investors/analysts register disappointment over the iPhone 5C's premium pricing.

Long expected to be a "low-cost" iPhone that would help Apple win back share from cheaper Android phones that have proven very popular with cost-sensitive buyers in both emerging and developed markets, the 5C is instead being priced as a fill-in for the iPhone 5 (now discontinued). The 16GB model goes for an unsubsidized $549 in the U.S, and (thanks to duties/taxes) $735 in China.

Cirrus had rallied sharply in the weeks leading up to the iPhone 5S/5C launches.

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Comments (12)
  • SoldHigh
    , contributor
    Comments (991) | Send Message
     
    Looks like a textbook "sell the news" event
    11 Sep 2013, 10:43 AM Reply Like
  • altaire4
    , contributor
    Comments (115) | Send Message
     
    The Bears will cover when the Pre-order data and the China Mobile and NT-Docomo deals come to fruition.
    11 Sep 2013, 10:45 AM Reply Like
  • muldoon1959
    , contributor
    Comments (34) | Send Message
     
    Speaking of the China Mobile deal, wasn't that supposed to be announced yesterday? Since it wasn't, is there any news on its ETA?
    11 Sep 2013, 03:00 PM Reply Like
  • Glenn Abrett
    , contributor
    Comments (2038) | Send Message
     
    Haven't touched aapl since March. Looks like time might be right. Article in Forbes yesterday very interesting. Gist: Apple couldn't price C too low as it would make subsidized cost 0 in US and Europe and cannabilize 5s sales. Now they can offer under the table deals in poorer countries to get the price down without destroying market for 5s in rich countries. Phones look good. Like fingerprint thing. Like IOS 7. Stock looks very, very cheap here heading into holiday season.
    11 Sep 2013, 11:51 AM Reply Like
  • coolhand79
    , contributor
    Comments (359) | Send Message
     
    I got into CRUS based on its price/book ratio of 2.0 (and a stock price of $17.70). the pb ratio for CRUS has a strong resistance of 2.0, and it is very close to this right now (2.45)...

     

    I wouldn't consider selling my position until I see at least a bv/price ratio of 3.00 - 3.75, which would equate to a stock price of $27 - $33.75.

     

    http://bit.ly/14Fsq7X
    11 Sep 2013, 12:10 PM Reply Like
  • coolhand79
    , contributor
    Comments (359) | Send Message
     
    Just to flesh this out a little. The main concern for CRUS shareholders was the possibility that Apple might begin using another vendor, thereby removing 85% of CRUS's income. This didn't happen. That's why I'm comfortable using the bv/price ratio to time my exit.
    11 Sep 2013, 12:19 PM Reply Like
  • investingInvestor
    , contributor
    Comments (2381) | Send Message
     
    The new launch will be the greatest volume of smart phones in history. Apple will beat its own previous record. Apple plays at a whole different level than the rest of the pack.

     

    The long list of country launches and growing global economy will add lift to the volume.

     

    Wall Street analysts lack a clue. First, iPhone 5C is for kids. Second, Apple found it better for customers to have a fresh polycarbonate shell and latest glue chips like LTE, so Apple discontinued last year's iPhone 5. Third, Apple is looking out for its customers and continually adding to its sticky ecosystem. Fourth, single specs in isolation are meaningless because it is all about the customer experience. Fifth, Apple just opened the door to mobile cloud gaming and OpenGL. Sixth, Apple's new camera is better than most single purpose digital cameras -- Apple has the camera you can best use.
    11 Sep 2013, 01:34 PM Reply Like
  • Zankudo
    , contributor
    Comments (317) | Send Message
     
    Well that's enough me talking about me. What do you think about me?
    11 Sep 2013, 03:10 PM Reply Like
  • Energysystems
    , contributor
    Comments (1981) | Send Message
     
    Seventh, LOL
    11 Sep 2013, 09:32 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (12961) | Send Message
     
    Really iPhone 5C is for kids? $550 or a an even more expensive subscription is for kids? Give me a break. And Tesla is for teenagers right?
    11 Sep 2013, 09:41 PM Reply Like
  • BruceInKY
    , contributor
    Comments (444) | Send Message
     
    Moon, you underestimate the persuasiveness of our sub-adults and the indulgent nature of their mothers.
    11 Sep 2013, 09:56 PM Reply Like
  • Island_Dweller
    , contributor
    Comments (620) | Send Message
     
    Then new launch will be the greatest volume of SPs in history? Has it occurred to you that the fingerprint feature will add a level of complexity to the manufacturer's already complex assembly requirement, therefore yields will quickly become an issue?

     

    http://on.barrons.com/...

     

    AAPL's camera is one you can use best? The 1020 would like to have a word with you. If you mean AAPL's camera is best for simple and quick decent photos, then OK, but if you mean it's the best overall camera you're way off.
    14 Sep 2013, 08:50 PM Reply Like
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